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Old 09-01-2005, 10:20 PM  
cjaccardi
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Join Date: Feb 2005
Posts: 406
it is price gouging, prices do not rise at that rate during regular supply and demand curves.. the demand rose only because false statements of supply. There was false statements by news radio, talk radio, and gasoline service stations. There was no/or is no shortage of supply. The escalading prices of gas during the mid afternoon gas frenzy caused consumers to panic even more, creating further temporary demand increase.
Prices were frozen only temporarily, allowing for equilibrium to drop to a more normal point on the supply and demand curve. Allowing the prices to rise would not slow down the demand. If people really thought their would be no gasoline they would have over spent on gas. the effect would have been devestating to the economy. thats why milk has controlled pricing
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