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I know what you mean, but |
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| Posted by |
yobobrox on May 20, 2009 at 12:41 AM |
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This message has been viewed 32 times. |
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| In Reply To |
last fall we had a diesel shortage here posted by vorpalZ on May 20, 2009 at 12:34 AM |
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supply and demand it is not. Not always. Let me relate it to the tobacco tax. Sure, tobacco costs a lot in the US because of the tax. But, if the tobacco farms got hit with bad weather and couldn't meet demands, the price would shoot up very high. You're right on that part; but the problem is that in the US, even when the demand goes down (like it currently is), the price is going up. And we're talking about months after things have leveled off, so it's not from latent economics. Someone decides the prices, regardless of the supply. But yes, if the supply gets cut, that also makes the prices go up.
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