When the price of gas spikes we expect people to drive less, but that’s not always the case. As is evidenced in the chart below, the demand for gas can move in the same direction as the price for gas.
In the chart below that we can see that the amount of miles traveled has slumped but not nearly as much as the price of oil has risen.
What options do drivers have? They are beholden to their cars.
This is why we need a better public transit system and improved rail infrastructure. When the economy starts firing on all cylinders once again, there will be more people working and more people driving to work.
The price of oil will rise and along with it the price of gas. But when the price of gas lifts, drivers will have no option other than driving their car and overpaying for gas.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.