In the face of gasoline prices approaching $4.00 automobile dealerships are heavily marketing their compact cars and hybrid vehicles

However, an interesting development is that many of these dealerships are offering their economy cars at MSRP (manufacturers suggested retail price) without offering discounts. What do you suppose these dealerships believe about the price elasticity of demand for these economy cars?

The dealerships may be assuming that the economy cars now have become more price inelastic in demand as consumers who are dumping their gas guzzling vehicles don't have many other choices.