Demand can accomodate to offer very elastically given that oil demand can be reduced just by driving less..andd slowly changing the car fleet.
If people commute to work, a lot of that demand isn't voluntary. Likewise at the moment there's almost no buy-in (if you'll excuse the marketing speak) among car makers that cheaper, smaller cars are necessary.
Interestingly I'm seeing more and more very small cars on the roads in the UK at the moment. A few years ago a Smart was a very rare sight. Now they're getting to be quite common.
There are still plenty of FUVs too though. And most advertising seems to be targetting the FUV rather than the mini-car market - even though there seems to be strong demand for smaller and cheaper among everyone who isn't an oblivious soccer mum or a raging petrol head.
More worrying is a trend towards diesel freight, away from train haulage.
it is my view.. though.. just my personal take.
A pleasure I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude
