Posted by Deere54 on December 15, 2014 at 08:54:55 from (152.119.255.251):
In Reply to: Gas vs Diesel posted by Sourgum on December 14, 2014 at 20:30:15:
Public relations and inelastic diesel demand. Gas prices are highly visible to the general gas-consuming public so the oil companies think they can lower gas prices and thus garner some public good will. Gas is a loss leader. The oil companies' real profit comes from No. 2 (Diesel) fuel, demand for which as others have pointed out is nowhere near as elastic as for gas. Gas goes up, people can cut back some, but there is nowhere much to cut back in No. 2 (diesel) usage. You have to buy your No. 2 to heat your home, work the land, freight transportation etc, no matter what it costs whereas your teenage kid can always skip the trip to the mall if gas is too high.
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Today's Featured Article - Tractor Traction - by Chris Pratt. Our first bout with traction problems came when cultivatin with our Massey-Harris Pony. Up till then, this tractor had been running a corn grinder and pulling a trailer. It had new unfilled rear tires and no wheel weights. The garden was already sprouting when we hooked up the mid-mount shovel cultivators to the Pony. The seed bed was soft enough that the rear end would spin and slowly work its way to the downhill side of the gardens slight incline. From this, we learned our lesson sinc
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