Inelastic, you keep saying that word, but I don't think you grasp the meaning. It means that the same amount of fuel is being burned, regardless of price. THE SAME AMOUNT. So the shortage argument is valid.
Sry, that's not what it means, inelastic products have a steep curve, meaning that price changes have to be significant in order for people to change their purchasing habits. There is a point at which some people will simply not be able to afford it, or at least only use it as a necessity. When prices get high enough, some gas station will close down, simply because they know the people in that region won't be profitable.
Joined: 09 Feb 2008
Posts: 556 votes: 16
Location: Central Alberta
Posted: Sun Jun 01, 2008 10:45 am Post subject:
I guess I spoke too soon, kwlafayette. Are you going to invest in Bakken? Because I am still going to invest in alternative energy.
And to bleatmop, why do you think everything is a conspiracy theory? Any conspiracy theory can be explained by one or more of the seven deadly sins.
The creed of the oilpatch will always hold true.
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