ST Alpha - "*sigh* OK. Econ 101." (Reading a Post)

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In response to "Huh? You've been missreading yet again. I never said anything about Demand. That's all you." by the liioulu with lots less

sigh OK. Econ 101.

Posted by Reagen Mar 17 '11, 18:21

Price is affected by supply and demand. Supply goes up, price goes down. Demand goes up, price goes up. Gaddafi can either sell or not.

If he sells to anyone, it doesn't change the price, because oil is fungible (all the same). He can't hurt Italy or France or whoever by embargoing them, as long as he sells.

Currently, no oil is getting out of Libya. So, the situation we're currently in is the same as if Gaddafi didn't sell any oil. Which isn't ideal but is barely hurting anyone, and couldn't be a rationale for not acting against him. It doesn't make sense to worry about him turning off the taps, since they already are off.

The question then becomes, will Gaddafi keep them off if he wins? He's crazy, but he's not stupid. He'll need money. Lots and lots of it, so he'll have to sell. Maybe not to the West, but it won't matter.

Responses:

[deleted] 2
- where do you see me doing that? My entire argument is based upon demand remaining fixed. -- nm - Reagen Mar 17, 18:29 1
  - [deleted]
And your point is that demand is fixed. repeatedly. you again seem to be arguing that supply has no affect on price. - the liioulu with lots less Mar 17, 18:23 6
- Huh? I explicitly said that supply affects price. Multiple times, even. - Reagen Mar 17, 18:27 5
  - No, not really. And it is a rationale. Has been for a long time. -- nm - the liioulu with lots less Mar 17, 18:32 4
    - so tell me how Gaddafi can make oil supply issues worse than they currently are - and if he is likely to. -- nm - Reagen Mar 17, 18:34 3
      - And it's still not about that. It's about his history in this area and whether or not he stays in power. - the liioulu with lots less Mar 17, 18:46 2
        
        but he has two options if he wins: sell or not sell. - Reagen Mar 17, 18:52 1
        
        Been there read it. -- nm - the liioulu with lots less Mar 17, 18:58
China. Town. nm - ralph wiggum Mar 17, 18:23

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*sigh* OK. Econ 101.

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sigh OK. Econ 101.