Comments on: The Price Is Right? Wrong! http://www.fitsnews.com/2008/11/14/the-price-is-right-wrong/ Unfair ... Imbalanced Sun, 21 Mar 2010 02:22:20 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: People Are Hitchin’ A Ride :: FITSNews http://www.fitsnews.com/2008/11/14/the-price-is-right-wrong/comment-page-1/#comment-43393 People Are Hitchin’ A Ride :: FITSNews Tue, 09 Dec 2008 06:00:01 +0000 http://www.fitsnews.com/?p=8880#comment-43393 [...] we hung our hopes on high gas prices – even to the point that we were the only ones who worried when prices started to [...] [...] we hung our hopes on high gas prices – even to the point that we were the only ones who worried when prices started to [...]

]]> By: Paul Kinfer http://www.fitsnews.com/2008/11/14/the-price-is-right-wrong/comment-page-1/#comment-42038 Paul Kinfer Fri, 14 Nov 2008 15:30:35 +0000 http://www.fitsnews.com/?p=8880#comment-42038 It is at my own peril that I take a lighthearted article too seriously, but my inner economist (and pedant) must protest ignorance: Gas follows the law of demand. The fact that "demand somehow managed to keep pace with the rising prices of the past year" does not refute this, as you state. Indeed, the rise in prices was a function of increased demand. <a href="http://economics.about.com/library/graphics/demand6.bmp" rel="nofollow">Here's the Holy Cross of Economics to demonstrate.</a> Lest you think me a nerd, please remember that economists do it with models. It is at my own peril that I take a lighthearted article too seriously, but my inner economist (and pedant) must protest ignorance:

Gas follows the law of demand. The fact that “demand somehow managed to keep pace with the rising prices of the past year” does not refute this, as you state. Indeed, the rise in prices was a function of increased demand.

Here’s the Holy Cross of Economics to demonstrate.

Lest you think me a nerd, please remember that economists do it with models.

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