Originally posted by sigma: on the ignorant assumption that since oil prices have gone up 300%, therefore demand must have gone up 300%.
Tell me where I made that assumption, because otherwise, your post makes no sense to me.
Sorry, joining in late, but can't pass up an economics discussion.
AJ - On page 4 at 10:00 AM you say: "So you are telling me that demand has increased worldwide 300% since Clinton was in office, when it was relatively steady before that for a decade! HAHAHAH "
That implies that you are looking at an approximate 300% increase in gas prices and then linking causation to a 300% increase in demand for gasoline. You then proceed to laugh at this absurd statement, correctly realizing that a 300% increase in demand is highly unlikely. However, in your mind you mistakenly continue to link the increase in gas prices to our current president's policies.
You fail to realize that a 300% increase in price does not have to involve a 300% increase in demand. If supply is limited or fixed, especially in the short run, a very small increase in demand can and will send prices soaring.
Don't even make me talk about elasticity. I'll start drawing those little graphs again... Too much fun.
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