Quote:
Originally Posted by T-Rich
Absolutely it will. Do you think that if a company gets a higher price for a good, that doesn't send signals to produce more.
Will it have a significant impact on production, probably not, but it will have some impact.
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X barrels of oil are burned per day.
So you're telling me that oil will get more expensive (the aforementioned higher price)
Therefore more will be produced
And people are just going to spontaneously burn more than the original X barrels per day, now that it's even more expensive?
I missed that chapter in Economics for Hippies.....
If people aren't burning it, they will stop producing it. It's very simple.