Cross-Price Elasticity of Demand II

If you are thinking about buying a smaller car or a hybrid in response to the high price of gasoline, here (from the Financial Times via Art Carden) is an alternative idea:

Farmers in the Indian state of Rajasthan are rediscovering the humble camel. As the cost of running gas-guzzling tractors soars, even-toed ungulates are making a comeback, raising hopes that a fall in the population of the desert state�s signature animal can be reversed.

�It�s excellent for the camel population if the price of oil continues to go up because demand for camels will also go up,� says Ilse K�hler-Rollefson of the League for Pastoral Peoples and Endogenous Livestock Development. �Two years ago, a camel cost little more than a goat, which is nothing. The price has since trebled.�