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Politics : Politics of Energy -- Ignore unavailable to you. Want to Upgrade?

To: J_F_Shepard who wrote (1849)	8/20/2008 4:33:25 PM
From: TimF	Read Replies (1) \| Respond to of 86356

That's a pretty odd statement, I've been saying the same thing each post, and you try to keep bobbing and weaving around it. This all goes back to your statement "If we have a total supply of 10 million barrels a day and then have an additional 1 million barrels come on stream it's reasonable to expect a 10% effect....." That implies a consistent unitary price elasticity for oil. So the obvious question is why do you think the price elasticity for oil is unitary? Absent the assumption that the elasticity is unitary there isn't any reason to think a 10% increase in supply would result in a 10% lower price.