In the United States, the long-run elasticity of oil demand has been estimated at -0.5. Some

policymakers and environmental scientists would like to see the United States cut back on its use

of oil in the long run. We can use this elasticity estimate to get a rough measure of how high the

price of oil would have to permanently rise in order to get people to make big cuts in oil

consumption. How much would the price of oil have to permanently rise in order to cut oil

consumption by 50%?