What could be done to keep the price of oil down is to increase fuel efficiency requirements for cars, introduce more hybrids with incentives from the government, and also produce more electric cars.
Price does change demand. As price of gas went up, more people bought hybrids and less SUV's. When price went back down, more SUV's were sold.
I actually believe we should have higher taxes placed on gas to help balance the budget that can be reduced only for certain reasons like war, the cartel increasing prices to punish us, or speculation by GS causing prices to rise for no reason.
Price does change demand. As price of gas went up, more people bought hybrids and less SUV's. When price went back down, more SUV's were sold.
I actually believe we should have higher taxes placed on gas to help balance the budget that can be reduced only for certain reasons like war, the cartel increasing prices to punish us, or speculation by GS causing prices to rise for no reason.
