Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (374516)	3/18/2008 7:24:58 PM
From: TimF	Respond to of 1573902

There is pretty much a set dollar margin between raw materials and finished, packaged goods. Fixed or variable, you haggle over the price to get as much of the margin as you can. But the actual trade is a mutually beneficial agreement. You wouldn't buy if you didn't benefit from doing so. They wouldn't sell if they didn't benefit from doing so. War is a mutually destructive action. Even the winner has some destruction. The loser may be totally destroyed. "Short run inelasticity of oil"??? A second ago you said OPEC couldn't pump any more! The two concepts aren't opposite to each other. They are almost unrelated. The price elasticity of demand is low in the short term. That means that in the short run higher prices do not exert strong downward pressure on demand (well eventually they will exert a strong effect of demand, after all your not going to sell much $10000 per barrel oil, but the price increase may have to be very large indeed for demand to decrease in the short run).