Wednesday, May 28, 2008

Downward Sloping Demand Curves

Gas prices go up and Americans start driving less.


(HT Alex Tabarrok)

1 comment:

thinking said...

Fancy that!

In retrospect, the economists who long ago advocated a gasoline tax increase to curb consumption and fund development of alternative energy sources were absolutely correct.

There is a benefit to gas prices going up and that is the changes that we see happening: less consumption, more conservation, focus on alternative energy resources, etc.

It's sad that it has to come to a problem point for people to act.