Been To The Gas Pump Lately ?
In economics first year students learn about the basic principles of supply and demand. They learn about rational behavior, and the theory of price elasticity. At what price is supply and demand at equilibrium? What is the optimal price to maximize profit? Will consumers pay any price for a commodity? At what price point does a rational consumer seek out an alternative good? Economics is a rational science that assumes that behavior can be quantified, studied and graphed. It assumes that consumers and suppliers behave in their own self interest and thus create efficient markets for goods and services.
An excellent article about the present state we are in with regard our dependancy on oil can be read here.
An excellent article about the present state we are in with regard our dependancy on oil can be read here.