[youbet]

Quote:

Originally Posted by AltaRed Demand goes down, prices are tempered. Maybe only $125. Econ 101

If you believe that an additional tax on gasoline in the USA would drop world demand enough to keep prices down....true. I just don't think our demand curve is elastic enough to drop demand significantly for a buck or two of additional tax and our percentage of total world consumption is beginning to fall. The problem is that world consumption is rising and higher prices (caused by tax or not) are simply slowing the rate of consumption increase, but definitely not lowering consumption. It's gona be trouble!

I totally agree that oil/gasoline prices will be going up, up, up. In making a decision on whether I should buy an RV or not, I used $9/gal as my guess at a future price. It might sound high, but I bet I'm a lot closer than your $5 guess......