"Consumption will decrease. Price will fall."
Yes, there must be a price at which consumption decreases and prices fall. Maybe $3.25 is that price. So far, though, only recession, not price, has slowed consumption.
Last year, for the umpteenth year in a row and despite gas prices rising virtually all year, consumption increased, average fuel economy for new cars declined, and miles driven went up, again.
Americans may grumble, but most will choose to spend another $50-100 a month on gas before significantly reducing driving, I suspect. If need be, other discretionary spending will get cut first. |
