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Arrian, you will find them if you look 
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"Mal nommer les choses, c'est accroître le malheur du monde" - Camus (thanks Davout)
"I thought you must be dead ..." he said simply. "So did I for a while," said Ford, "and then I decided I was a lemon for a couple of weeks. A kept myself amused all that time jumping in and out of a gin and tonic." -
Serious question:Originally posted by Kidicious
So would the cost.
What are you talking about?
-Arriangrog want tank...Grog Want Tank... GROG WANT TANK!
The trick isn't to break some eggs to make an omelette, it's convincing the eggs to break themselves in order to aspire to omelettehood.Comment
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"Mal nommer les choses, c'est accroître le malheur du monde" - Camus (thanks Davout)
"I thought you must be dead ..." he said simply. "So did I for a while," said Ford, "and then I decided I was a lemon for a couple of weeks. A kept myself amused all that time jumping in and out of a gin and tonic."Comment
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Demand only determines cost in the short run. In the long run supply either adjusts or it doesn't. Either way supply is what determines the price in the long run. Get it?Originally posted by Arrian
Serious question:
What are you talking about?
-ArrianI drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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Remember that demand means "those who want the product AND who can afford it".
Say, you're a taxi somewhere in Africa, and you can't afford gas anymore. even though you ****ing need the gas to survive, you won't count as "demand" for gas."I have been reading up on the universe and have come to the conclusion that the universe is a good thing." -- Dissident
"I never had the need to have a boner." -- Dissident
"I have never cut off my penis when I was upset over a girl." -- DisComment
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That's true, Spiff. Or you will count as "demand for gas at $X/barrel of crude." Either way, you won't be able to afford it.
Kaak, now that I think about it some more:
Production is going to rise to meet demand to the extent that it's physically possible to find more oil. So, over time, production will equal consumption. Duh. The variable will be price.
Higher demand will drive up price, which in turn will drive more investment in more production.
-ArrianLast edited by Arrian; April 27, 2006, 12:15.grog want tank...Grog Want Tank... GROG WANT TANK!
The trick isn't to break some eggs to make an omelette, it's convincing the eggs to break themselves in order to aspire to omelettehood.Comment
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They're pretty clearly interconnected, Kid.Originally posted by Kidicious
Demand only determines cost in the short run. In the long run supply either adjusts or it doesn't. Either way supply is what determines the price in the long run. Get it?
Let's say for example that over a substantial period of time, demand for oil actually drops (obviously a pretty crazy hypothetical, but hey). The price will drop, at least to begin with. Investment in finding more oil will also drop... which, long-term, will result in a drop in supply, which will bring it back into line with demand. The price will then come back up.
So who's driving it, Supply or Demand? Seems to me it's demand, and supply adjusts... reacting to changes in demand.
-Arriangrog want tank...Grog Want Tank... GROG WANT TANK!
The trick isn't to break some eggs to make an omelette, it's convincing the eggs to break themselves in order to aspire to omelettehood.Comment
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In your example there is no change in price in the long run to speak of.Originally posted by Arrian
They're pretty clearly interconnected, Kid.
Let's say for example that over a substantial period of time, demand for oil actually drops (obviously a pretty crazy hypothetical, but hey). The price will drop, at least to begin with. Investment in finding more oil will also drop... which, long-term, will result in a drop in supply, which will bring it back into line with demand. The price will then come back up.
So who's driving it, Supply or Demand? Seems to me it's demand, and supply adjusts... reacting to changes in demand.
-ArrianI drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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Have a look at the inflation-adjusted price of gasoline over the course of the last 50+ years. What do you see?
I see some blips due to disasters/instability/governmental stupidity, but otherwise I see a relatively stable price.
-Arriangrog want tank...Grog Want Tank... GROG WANT TANK!
The trick isn't to break some eggs to make an omelette, it's convincing the eggs to break themselves in order to aspire to omelettehood.Comment
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Look, at the end of the day, the only "solution" to this "problem" is to generate energy (including energy for our vehicles) in some other way, to the extent that it is economically feasible (cheaper than oil).
End of story.
-Arriangrog want tank...Grog Want Tank... GROG WANT TANK!
The trick isn't to break some eggs to make an omelette, it's convincing the eggs to break themselves in order to aspire to omelettehood.Comment
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Arrian, I don't disagree with you. I do, however, think it's foolish for KH to come in saying "price is all about demand and you are refuting adam smith, and blah blah blah." I know that I don't know everything about economics, but I do read the news. I know there is a lot more to it than just increase in global demand."Mal nommer les choses, c'est accroître le malheur du monde" - Camus (thanks Davout)
"I thought you must be dead ..." he said simply. "So did I for a while," said Ford, "and then I decided I was a lemon for a couple of weeks. A kept myself amused all that time jumping in and out of a gin and tonic."Comment
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Originally posted by Kaak
oh, now i see
err sumemr driving season anyone-- gasoline demand always spikes in summer just like natural gas demand in Canada always spikes in winter--- its a predictable pattern which your graph reflectsYou don't get to 300 losses without being a pretty exceptional goaltender.-- Ben Kenobi speaking of Roberto LuongoComment
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That's because the inflation adjusted cost hasn't changed much over the long run. However, the demand certainly has, that's why the supply determines the price.Originally posted by Arrian
Have a look at the inflation-adjusted price of gasoline over the course of the last 50+ years. What do you see?
I see some blips due to disasters/instability/governmental stupidity, but otherwise I see a relatively stable price.
-ArrianI drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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But the question is how long will that take, and what is the situation until then.Originally posted by Arrian
Higher demand will drive up price, which in turn will drive more investment in more production.I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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Ummm....and the supply has too (it has grown in tandem with the increased demand...as opposed to simply having grown "for its own sake"). Is there a point to this little whimsical exploration?
-=Vel=-Comment
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