No. There is not a situation of supply and demand. The supply is 100% and any more there would be no place to store it.
really? They are just storing gasoline?
Put another way, we have a 100% supply at current prices... but produce more at lower prices and consumption would certainly increase. As it is now many people are rationing their fuel use because they can't afford more.
I have my own answers, of course, but he asked you.
What? More “Just-In-Time” inventory technique?
Let me guess. You work for Exxon?
“The supply is 100% and any more there would be no place to store it.”
Unless, of course, you had more places to store it.
Your point is taken, in that there isn’t a viable alternative to ICE powered cars.
With effective electric and hybrid alternatives, the price of gasoline will drop. It’s already been demonstrated that most hybrids are $3k worth of extra battery packs away from actually delivering 100 MPG. For some reason, the manufacturers aren’t modifying their products to hit this mark when they know they can.
Prices are always a result of supply and demand, regardless of what creates the supply abundance or restriction. The laws of economics are laws, not suggestions. If gasoline were $1.80 per gallon the consumption in the country would increase dramatically, so there would not be a storage problem.
The supply available today is sufficient to meet a demand that is constrained by high price. Reduce the price and demand goes up, however the supply would not be able to meet the demand. Therefore the price does not go down.