25.4.06

QUESTION OF THE DAY. Economic Education:
The ultimate point of this post is that those students that wish to see us conserve energy, energy independent, or whatever, may need to ask themselves whether or not higher gasoline prices may actually give them what they want sooner. The market imposes choice. Those choices are reflected in our search for substitutes (for oil and for current transportation technology), and the income effect (increases costs of one good or service will reduce the funds available for other goods and services).
There will be a quiz on this, later.

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