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Old 02-03-2006, 05:16 PM   #15
sirex
King Sirex
 
Join Date: Aug 2002
Location: Toronto
Posts: 9,832
well it makes sense fridays price increases.. People are going to be buying alot more gas on friday then any other day of the week. Therefore they need to make sure there inventory doesn't dry out before it can be refilled.

as for oil running out.. yes I know that.... the companies will still produce the ammount of oil demanded though for as long as possible.. You will see price rise however... When demand increases, supply has to increase to cope with demand. But at what price? Well to produce that 1 extra barrel per day it costs more then the previous barrel..

Untill the physical limit of pumping out oil is reached - it seems to be growing every day, that is we pump 1 barrel today, 2 tomorow, etc - then the prices will continue to rise... But the price is not rising because of scaricity or rarity of the item, not yet at least.. If it was we would be paying alot more then we are now. Remeber it costs more to produce more.

As more and more is demanded, price continues to rise and eventually demand will be so great, that price will also be so great and demand will begin to fall.... Eventually the consumer will drive prices so high that we wont be able to afford it, and that will be because so many of us want it.

im sure some level of the price we pay now is related to the scarcity of the item.. but probably not much.

Last edited by sirex; 02-03-2006 at 05:49 PM.
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