Oil Goes Up, Driving Goes Down

I have had people tell me that energy demand does not fall when prices go up.  I am unsurprised when they tell me they have never so much as had a class in economics.  I am surprised when they make such assertions without any grounding in the discipline on which they are commentating so assuredly.

From the New York Times, via Greg Mankiw

In normal times, the number of miles driven in the United States rises each year, as more people drive more cars and as rising housing costs force some commuters to move farther and farther from their jobs.

But the Federal Highway Administration estimates that in March — the most recent month for which data is available — vehicles traveled 246 billion miles. That is a lot of driving, but the figure is down 4.3 percent from the previous March.

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