Tuesday, May 27, 2008

That proves it's not about 'supply and demand'

I saw this headline today at CNN.com, "As gas goes up, driving goes down".

And as you read, it's followed with this;
The Department of Transportation said figures from March show the steepest decrease in driving ever recorded.

Compared with March a year earlier, Americans drove an estimated 4.3 percent less -- that's 11 billion fewer miles, the DOT's Federal Highway Administration said Monday, calling it "the sharpest yearly drop for any month in FHWA history." Records have been kept since 1942.
What have gasoline prices done in the two months (1 month and 27 days) since the end of March?

If demand goes down, so should the price.

That headline should read; "As driving goes down, gas goes up".