Originally Posted by ban basketball  My wife and I were talking about this last night about how we are getting duped by this whole "supply and demand" sham.
Apprently, demand for gas is down. So, why are the prices not falling for consumers accordingly? When demand was low in the winter, why did the price continue to skyrocket?
She just saw a program the other day that said that there is no way to measure supply of gas or demand for gas. The whole thing is a sham and follows no basic laws of economics. |
Demand for gas is down in the US, but oil is sold on a world-wide market, so if more people in China and India want to buy gas the price will continue to increase even if people in the US buy less.
Even if demand for gas is low in the winter, demand for oil may not be (people buy much more heating oil in the winter than in the summer). Plus more people in other countries started buying cars, which means demand actually increased.
You can't measure supply of gas? Companies that sell gas do inventory (as do all companies that sell stuff), if you add up the inventory of all the companies that sell gas you get a pretty good measure of quantity supplied (which is differant that supply). You can't really measure the supply or the demand for any good, however you can measure the quantity supplied and the quantity demanded at a given price.
What law of economics does oil/gas (which you seem to be using interchangably) not follow?
Re: Gas Prices - Again 
Linear Mode
