Thread: Any economists?
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Old 05-17-2008, 12:41 AM   #9 (permalink)
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Originally Posted by thebrad View Post

From a supply and demand perspective, say 15 years from now those people with petroleum fueled weekend, hobby, classic, or even daily drivers cars. The supply would essentially be very little, but we could be left with a surplus (being optimistic). The price for gasoline would be astronomically higher to what we pay currently because the demand just isn't there any more, correct?

Any thoughts?
Lets see here...If the demand is low and the supply is high then the price SHOULD be low (many sellers trying to sell their stuff to relatively few buyers means the price usually drops. This is happening now in the housing markets in some parts of the US as the lenders flood the market with houses they are trying to sell. ) provided there are no other factors in the mix (like taxes to reduce greenhouse gas emissions etc) according to classic s/d theory.

So to answer your last statement about "the price being higher since the demand just isn't there anymore".
It is actually the other way around.

Hope that is some help.

By the way I obtained my degree in economics in '78.

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