park it

I have been keeping it close to home over the holiday weekend, heeding the President's call to conserve gas. (Well, not really, but I haven't been driving my car.) Yesterday, however, I went for a short drive and had my first chance to see gas prices in the $3.50 range. It was pretty appalling, but more appalling was the realization that there were still lots of cars on the road and lines at the pump. I don't want to make a judgment call, because obviously I was out driving myself, but I'm wondering what will result from this.

If people are willing to pay that much for gas (including those idiots who pay for "premium" gas to fill their SUV's), will prices linger in that range, regardless of the cost to the station or supplier? Someone who remembers something from economics class, am I missing something?