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 […]