I remain amazed at this graph from EIA:
gasoline consumption
Consumption for the third week of December (the most recent available) jumped over the previous week, but it’s still 6 percent below the same week a year ago. Look at the right-hand tail on that graph!
The price, meanwhile, is $1.44 per gallon below last year at this time. You’ll recall from that economics class that you took many years ago that, ceteris paribus, (Gawd I’ve been wanting to say that!) a reduction in price leads to an increase in the quantity demanded. But ceteris is not paribus currently, on account of the whole economy being in the crapper and all, which means that income elasticity has taken hold, and we’re demanding an awful lot less gasoline.
“But honey, there’s an upside to us both losing our jobs on Christmas! We won’t have to buy gas to get to work anymore!”
Demand destruction (from SUV to Prius, changing habits, etc.) has also decreased demand at ALL prices…(“demand shifted in”)
People do remember. It took most of a decade to wipe out the memories of gas lines in the 70s, which is why SUV sales are still in the crapper.