A colleague predicts that the price of premium gas will go down as consumers demand less of the high octane fuel Another scenerio is that foreign consumption of premium gas will increase to offset the demand. Scripps ran a story here. He could be right.
Q. How many economists does it take to screw in a lightbulb?
A. A hundred. One to screw in the lightbulb and the other 99 to hold everything else constant.
Q:Why did God create economists ?
A:In order to make weather forecasters look good.
A:In order to make weather forecasters look good.
Finally, I asked an economist for her phone number....and she gave me an estimate.
But how much of an impact do consumers have on the price when all I keep hearing is about investors over in Europe being the main cause of price increses due to their 'paper betting', persay, on oil prices? Thus, once the 'paper price' goes up, the oil companies have no other way to make the investors happy than to subsequently raise the price of oil.
ReplyDeleteI think speculation is driving gas prices...marginal revolution has written much on this topic...I also think expectations are driving prices...most of China's fuel is subsidized and the government is removing those subsidies now...the removal of price controls might tame some of the guel prices...may i recommend http://volokh.com/ for an intelligent discussion on oil executives now being tried in court--i believe to be tried on collusion....thanks, flad
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