Supply and demand
Saturday, May 24th, 2008I understand that I am to believe that the price of gas has gone up due to global demand. If this is the case then why can I buy as much gas as I want on just about any street corner in America? Isn’t it more likley that gas is $4 per gallon because people will pay that price without any significant change in consumption behavior? If you had a product that you could sell a quantity of 100 for $2 or a quantity of 95 for $4 what would you sell it for? Gas is the price it is because the oil and gas industry knows that you will pay it.
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