So I was thinking.

[JayS]

@Minglor

Do you ever get tired of being stupid?

I think this picture explains why that could never happen better than any words could…

[travisn]

@khoveraki

In the food industry this question is answered mostly by shelf life. How long can gas sit in an industrial gas tank before it’s less usable? If the shelflife is a decade then I don’t think the price would go down. You don’t need to sell the gas quickly if it’s not expiring, so price wouldn’t as affected.

actually that sounds kind of stupid. haha

I dont think any gas station would ever have a gas sale because it is going to expire. Most normal cars would just adjust timing to burn whatever junk is in there. And its not like that car will always run on that junk gas, it will probably get gas someplace else soon enough. Plus they are constantly adding new gas to the mix so it basically dilutes out.

For example, at a gas station in the middle of the desert, I don’t think they would ever cut prices if it doesn’t sell even if it sits forever. It will still burn.

Im pretty sure gas goes bad with exposure to oxygen/atmosphere. I believe those gas tanks are sealed with valves and what not.

[chino]

This makes me laugh because I see why he says what he said, however taking micro and macro economics at UB the only thing I took away from it was how to look at a supply and demand graph in 500 different flavors.

I guess I did learn something :gotme:

[khoveraki]

@travisn

I dont think any gas station would ever have a gas sale because it is going to expire. Most normal cars would just adjust timing to burn whatever junk is in there. And its not like that car will always run on that junk gas, it will probably get gas someplace else soon enough. Plus they are constantly adding new gas to the mix so it basically dilutes out.

For example, at a gas station in the middle of the desert, I don’t think they would ever cut prices if it doesn’t sell even if it sits forever. It will still burn.

Im pretty sure gas goes bad with exposure to oxygen/atmosphere. I believe those gas tanks are sealed with valves and what not.

word, so prices would potentially stay static in terms of demand loss, disregarding speculation at least.

The scenario as a whole is so flawed anyway since truck drivers, jets, etc can’t simply use less gas.

edit: maybe prices would go up? my only example would be flying Js on rt 77. They’re 20 minutes from here but their gas prices are always 35-50 cents less because they do huge volume sales

[Joe]

Do i have to break out the supply and demand graph?

File:Supply-and-demand.svg

Suppose right now we’re at D2 in terms of amount of gas we use. The price per gallon is P2. Then we drop to D1. The quantity demanded at any given price decreases, and the new equilibrium point between supply and demand falls to P1.

[Maksim2000]

@theblue

but you’re still missing my point… the price of gas is not set by supply and demand… it’s set by human speculation about supply and demand in the future, like many commodities.

All demand is “set” based on the human speculation about future value.

[travisn]

@khoveraki

word, so prices would potentially stay static in terms of demand loss, disregarding speculation at least.

The scenario as a whole is so flawed anyway since truck drivers, jets, etc can’t simply use less gas.

edit: maybe prices would go up? my only example would be flying Js on rt 77. They’re 20 minutes from here but their gas prices are always 35-50 cents less because they do huge volume sales

and if you drive five minutes north the rez is ten cents cheaper than that!

[theblue]

@Maksim2000

All demand is “set” based on the human speculation about future value.

I said it in verbose because many people who are simply at a gas station looking at prices assume it’s based on speculation about today that causes today’s prices. if that makes sense

[Maksim2000]

@theblue

I said it in verbose because many people who are simply at a gas station looking at prices assume it’s based on speculation about today that causes today’s prices. if that makes sense

Right. Also people usually don’t understand that if the market price goes up - the distributor has to raise the price, even if they have existing stockpile of the gasoline. Otherwise they are better off selling it back on the commodities market at the new price rather then to consumers at the old price