Despite a price jump of 75% in gasoline per gallon since 2000, Americans bought 10% more in gas in the first half of 2006.
Basic economics teach us that as prices increase, people buy less.
"You would think [people] would react to costlier gasoline by gradually making such adjustments as carpooling, switching to more fuel-efficient vehicles, or even getting a job closer to home. [And] to an extent, they do. Energy Dept. economists say gasoline consumption, driven by an expanding population and economy, would be even higher today if prices hadn't risen."
"But there is a powerful force undermining the conservation trend: Sticker shock doesn't last forever. People are getting used to high gas prices, painful as they are, and continuing with their old ways of doing things. Some are cutting back on spending in other areas, which has chilled non-gasoline retail sales growth. But a reasonably strong economy with a 4.6% unemployment rate seems to be enabling many families to fill the tank with little strain."
FULL STORY: Can't Stop Guzzling

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