Tuesday, August 16, 2011

How do you lower gas prices?

ok well in the traditional market economy, an increase in supply or decrease in demand would lower prices. however, there's no practical way to increace the supply of gas: there's a finite amount that is not being renewed, and even if we started drilling all the worlds oil fields today it would still take 10 years or more to have oil pumping from the wells, so we're essentially stuck with the current supply. demand's not going down any time soon... more people=more cars=more gas, and china and india especially have a LOT of people that are getting cars. the government could theoretically force oil companies to lower prices, but that just lowers incentive to drill and refine the oil in the first place, causing a further reduction in supply and a possible shortage. so, what do you do?

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