Quote:
Originally posted by Eagle Eye@Aug 31 2005, 08:20 PM
Gas prices are supply demand related just as most other products are. The only thing is that it looks like they tend to guess when supplies are going to be low (long weekend, etc), but over the last few long weekends the price really hasn't gone up much.
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You think? I dont agree. I dont think gasoline prices are really supply and demand.
The supply is regulated.
The demand is largely constant because gasoline is too critical and essential to most people. To live in rural Alberta, or almost anywhere in Canada (but maybe Toronto and Vancouver), a personal vehicle that consumes gasoline is essential. If something is essential, a person will buy it no matter the costs. I think that is what happens with gasoline.
For supply and demand principles to have much effect, both the supply and demand must be fluid and work together; I dont think that is the case with gasoline.