Sec. Cementhead Emphasizes Just How Important Coal Plants Are To US Future

[hatrack]

Last edited Fri Jul 7, 2017, 11:48 AM - Edit history (1)

MAIDSVILLE, W.Va. (AP) — U.S. Energy Secretary Rick Perry said Thursday that coal-fired power plants are important for the country's future, and he suggested that energy supply will spark demand.

After touring a coal-fired power plant, Perry was asked about the economics of coal when natural gas is far cheaper. West Virginia currently has a boom in gas production but needs more shipping capacity. Several pipeline projects are under way.

"Here's a little economics lesson, supply and demand: You put the supply out there and the demand will follow that," Perry said. "The market will decide which of these they're going to pick and choose."

That's not typically how economists would describe the way supply and demand works. In general, higher demand for any good or service — such as coal — drives the supply. That's because more customer demand typically drives up the price, which then encourages businesses to provide more of the good or service to make more money. The rise in supply then acts to bring down the price.

EDIT

http://www.greensboro.com/ap/us_world/perry-says-coal-fired-power-plants-important-in-us-future/article_15d17ea8-fc4e-5c7f-ad87-e97b57b1e135.html

[Botany]

1. 100% wrong

"Here's a little economics lesson, supply and demand: You put the supply out there and the
demand will follow that," Perry said. "The market will decide which of these they're going to
pick and choose."

From wiki ...... demand causes the supply to set its price.

In microeconomics, supply and demand is an economic model of price determination in a market. It postulates that in a competitive market, the unit price for a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.

[hunter]

2. Maybe he's confusing the coal industry with a baseball movie...

https://en.wikipedia.org/wiki/Field_of_Dreams

[LastLiberal in PalmSprings]

3. Trump ought to use all this coal to build his wall

Win-win.