Vice versa would mean that when price goes down, demand goes up.
You disagree with this, lol? Demand has not supported the domestic retail price of gasoline for several years now. Every excuse in the world has been used to rationalize it.
Another basic economic truism would be that weak demand leads to a decline in price. Domestic demand for gasoline has proven not to be as inelastic as was supposed, therefore gasoline is not price inelastic, either, despite all the hot air expended upon the topic.
Isn't the building block of gasoline, crude oil, basically priced by world demand?
China is mfg 15 million cars a year now.
You are leaving out 2 very important things.
1) The dollar has been devalued due to “quantitative easing” otherwise known as monetizing debt. The resulting inflation has been completely ignored by the MSM. Compare what you spent on basic groceries prior to 2007 (when the Dems took over the house and senate) compared to now.
2) Petroleum is a fungible commodity. Just because demand in the USA dropped, doesn’t mean demand dropped worldwide. China is busy creating a middle class, and they want cars.
Vice versa would mean that when price goes down, demand goes up. (RegulatorCountry)
No. You do not understand vice versa. In the simple economic model, price sets the demand. Vice versa would mean demand sets the price, and that is not how things work, eh?
Anecdotally, if the price goes up, my range of travel is limited. I use less gasoline. When the price comes down, I feel freer to use my vehicle a little more.
The price of fuel may well determine what kind of vehicle one chooses to buy, depending on whether economy is a dominating factor. That certainly has governed the statistics of Europe and Japan re engine and auto size.