Despite a not insignificant investment of brain cells, I admit to continued ignorance of the ways of economics. Perhaps some of the smart people who read this blog can help me understand this:
Gasoline demand for the four weeks ending May 26 averaged over 9.3 million barrels per day, an increase over last year, despite average retail prices in May being 75 cents per gallon higher than they were a year ago.
Traditional economics would suggest that when the price of something rises, we buy less of it, right? I don’t get it.