03 Jun 08 05:44, TOM WALKER wrote to ROY WITT:


 RW>> TW> I don't undersdtand the Mentality that cannot understand BASIC
 RW>> TW> ECONOMICS.
 RW>> TW> The price of a product Follows the cost of the material required
 RW>> to
 RW>> TW> produce it, PERIOD. There IS NO OTHER WAY.

 RW>> Oh yes there is. It's called 'supply and demand'...low supply means
 RW>> that the cost will go up because it's still a required consumer
 RW>> product.

 RW>> When demand is higher than the supply, the cost of the product gets
 RW>> even higher. As you've seen with the gas prices.

 TW> Think About it. IT is Supply and Demand pushing UP ther Wropld Prioce
 TW> of OIL. So thwere is NOTHING wrong with my Statement The Price of a
 TW> Product is DIRECTLY related to the Cost of the Raw Materials. YOU
 TW> cannot change that. IT is a FACT of economics.

It's already changed by the oil companies. Since they're at capacity and
don't have anymore capacity to make their products, what they have is a
big supply and no means to process it. OTH, there is the public who has
made a demand that the oil company can't meet, so the supply becomes more
valuable and as they make their product, increase the retail price
accordingly. They don't report 'record' profits for the fun of it.

                R\%/itt



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