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Abstract

This study aimed to analyze the demand for gasoline C in Minas Gerais, from January 2002 to December 2010. The results suggested that gasoline demand is influenced by the C of C gasoline prices and ethanol and the consumer’s income. It was found that demand was inelastic to the price of gasoline C, in the short and long term, and elastic in relation to incomes in the long term, while in the short term proved to be inelastic to income. Hydrated alcohol is an imperfect substitute for gasoline C, both the short and long term.

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