Posted on 09/01/2005 5:46:56 AM PDT by Blood of Tyrants
Also, what effect will Katrina have on the economy? Will high gas prces bring a recession or more oil exploration and new refineries?
It's the free market at work. If you owned the gas station you would do the same thing. Higher prices force conservation. keeping the price the same in the face of a demand spike results in a shortage.
I'm betting people are hoarding gas. Just a guess.
It's not illegal to make a profit. these same people would face losses if they kept the price the same and ran out. They would lose sales until the short term supply issues were reseolved. The higher prices force conservation, and makes the gas available to those who truly need it. It forces the boat, dirtbike, and four-wheeler owners to postpone their receational activities until the problem is resolved by the market.
It's not illegal to make a profit. These same people would face losses if they kept the price the same and ran out. They would lose sales until the short term supply issues were reseolved. The higher prices force conservation, and makes the gas available to those who truly need it. It forces the boat, dirtbike, and four-wheeler owners to postpone their receational activities until the problem is resolved by the market.
It's not illegal to make a profit. These same people would face losses if they kept the price the same and ran out. They would lose sales until the short term supply issues were resolved. The higher prices force conservation, and makes the gas available to those who truly need it. It forces the boat, dirtbike, and four-wheeler owners to postpone their receational activities until the problem is resolved by the market.
You actually understand the laws of supply and demand. Kudos to you sir!
The cost will come when they lose money due to being out of gas because they didn't raise the price. the laws of supply and demand are at work. If you have a spike in demand, the price is going to rise.
Certainly. Only a poor businessman will sell a gallon of gas for less than the consumer is willing to pay for it. Therefore, you keep the price as high as the consumer is willing to buy it for, even when your cost goes down. When sales drop off, you lower the price. It's the constant adjustment caused by the laws of supply and demand.
It's simple actually. When there is a spike in demand, the price rises. This forces conservation, and makes sure that you do not run out of the supply on hand at any given moment. If you do not raise the price in the face of a demand spike, the panicked buyers will buy more than they actually need at the moment, and you run out of gas. Then, the next day, when you are out of gas, and you aren't going to get a delivery for three days, you lose sales for those three days. Therefore, by raising the price of a scarce commodity (even if it's temporary scarcity) forces consumers to conserve, and buy only what they cannot do without. this leaves gasoline for others who absolutely must have it. The boat owners, RV owners, four wheelers, dirt bikers, multi-car families, and the like choose to buy less, or not buy at all, and keeps the scarce commodity available.
I have no oil investments, and I understand supply and demand. Do you?
The Woodlands, TX = $2.93 per gallon.
Yes, call your senators and tell them to let the free market solve this problem, and to stay out of it so they don't muck things up.
Hawaii here. Our prices are similar to yours. We were kind of shocked to pay $30 for a fill up for our sentra a few days ago. At least we don't have to worry about heating bills. :-)
Of course not. Only a poor businessman would sell a product for less than the consumer is willing to pay for it. When the price causes demand to go down to the point where the business is losing money, then it will go down.
There is never a justification for selling at a loss. Businesses are not charities. Would you ask your boss to pay you less than he or she is willing to pay? You know the answer is no. A businessman is not going to charge less than the consumer is willing to pay, and would be foolish to do so.
Bull, prices going up .50 in two days. It is price gouging and I hope charges are pressed.
You think that refinery only supplies your area?
I saw $3.20gal here on James Island in Charleston, SC. I've canceled my family trip to Roanoke, VA. this weekend. I'd pay for the gas no problem, but I can't be sure I'll be able to get a tankful for the return trip with all the recent unpleasantness.
What is plain and simple is that you have no understanding of the fundamentals of the free market, or the laws of supply and demand.
East of Redmond,WA jumped .12 cents last night.
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