Marc2b
Posts: 6660
Joined: 8/7/2006 Status: offline
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quote:
I'm going to end this here, because it's tiresome, but I'll point out why this statement is blessedly uninformed. Have you heard of the concept of demand elasticity? Go look it up, if you haven't. If you're talking about inelastic goods (and petroleum is an inelastic good), what you've said is false. You might learn a thing or two about the California energy crisis, by the way, if you discover why prices for electricity were supposed to be controlled. That has to do with demand elasticity too. Of course, I'm the one who doesn't understand a thing about the science of economics. Amusing. Last time I was an ideologue. Don't I get to be an ideologue this time too? This time I'm just an ignoramus. Bye bye. First off, I am sorry I called you ignorant. The truth is somebody at work got my dander up and when a checked in on the thread shortly afterward I was still angry and I ended up taking it out on you. I apologize for it. I still stand by my ideologue theory, though – at least when it comes to global warming (and no, we are not going to get back into that). As for the rest: Yes, I know what demand elasticity is. Yes, I know that petroleum is not very elastic. But the ability to make a profit by selling low price/high volume and inelasticity are not mutually exclusive. The oil companies certainly sell a high volume of their product don’t they? This doesn’t necessarily mean that they will sell at low prices but being inelastic doesn’t mean they can sell at prices that are too high either. If people can’t afford it – no matter how much they need it – then they can’t afford it and at some point the oil companies would start to loose money. And being inelastic doesn’t mean no elasticity at all. There are a range of prices at which gasoline does have some substitutes. If gas suddenly rose to five dollars a gallon you’d see a lot more people bicycling to work all of a sudden. That’s assuming that they had a job, of course, since such a sudden increase would be certain to start a recession (maybe even a depression). Now that I think about it, look at Europe: High gas prices, high unemployment, lots of bicycles. Also, bear in mind that prices aren’t the only thing that affects demand. The baby boom resulted in a sudden influx of new drivers – increasing the demand for gasoline. Well, I got to get back to deciphering ferryman’s posts from that other thread. I still haven’t figured out what the post office and Ebay have to do with nuclear weapons or pre-emptive strikes. Probably won’t figure it out tonight, though – "Lost" comes on at ten.
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Do you know what the most awesome thing about being an Atheist is? You're not required to hate anybody!
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