At 09:09 PM 9/6/97 EDT, ROBERT G. HOWARD wrote:
>
>Yes, that's the classic situation I learned in Eco, but there must be
>other factors at work also. I'm thinking of this summer's price runup in
>gasoline, which is currently $1.56 (US, 4-qt gallon) here in Connecticut.
> There isn't a shortage--we can buy all we want, yet the suppliers say
>the supply is tight because of plant shutdowns for maintenance, etc. Do
>they not shut these plants routinely for maintenance? One assumes that
>summer must be a good time for the work--one hopes that it's not to cause
>an artificial shortage.
>Another theory that I learned was that the unit cost decreases as volume
>of product increases. Should we conclude that a summer shutdown of a
>plant causes the unit price of gasoline from other plants to increase?
>The producers must certainly be aware that there are more vehicles on the
>road during the summer. One of the producer representatives, talking on
>CT Public Radio yesterday morning, attributed the price increase to the
>larger number of SUVs careering down the highways, yet the producers have
>access to the same auto sales reports that the rest of us do.
>I don't know the answer to this, but the explanation can't be as pat as
>supply/demand.
>Bob
>
>>
>>Please check with your Economics teacher (assuming you had/have one)
>>before popping off about something of which you are obviously
>>abysmally ignorant.
>>
>>By the way, what has the esthetics of your web site have to do with
>>whether or not the demand for LBC has increased or no?
>>Rick Morrison
>>72 MGBGT
>>74 Midget
>>
Heh...my Economics teacher said that it has to do with collusion. The gas
companies collude to charge higher prices. Case in point...A local gas
station for a grand opening promotion (Pump-and-Save gas station which was
attached to a grocery store called Sack-and-Save) charged for gasoline at
cost. People from all over the town went to this gas station to get gas
which happened to be quite a bit cheaper than the other local gas stations.
This really didn't please the local gas station owners, so someone told on
the pump-and-save station. There is a state law here that says that you can
not charge for gasoline at or below cost. Why does that law exist? The
gasoline industry just so happens to be a major lobby group. They get state
legislators to pass laws that say that you can not charge at or below cost.
They say that it is to protect competition by getting rid of "predatory
pricing." That reasoning actually destroys competition. This also protects
the consumer they claim, but I don't know where they get that idea from.
They have colluded together to pass legislation that would protect
themselves, stiffle competiton, and fill their pockets all at the comsumer's
expense. The gas industry claims that they can't charge lower prices at
because of the supply. As it was said in a previous message...there really
isn't that much of a shortage. Gas mileage in new vehicles is better than
ever before. I haven't seen any signs saying that stations are out of gas
(the 70's energy crisis was basically a panick). What it all comes down to
is greediness. Sometimes I think that the gas companies take advantage of
bad situations (i.e...the Gulf War, plant maintenance, etc) to fool
consumers in believing that the supply is low therefore having a "good"
reason to get more money. So, next time you ask yourself...Why are gas
prices so high? It's greediness, my friend...greediness.
BTW...the gas industry isn't the only one who colludes to charge higher
prices. There's plenty of legislation out there thanks to lobby groups that
"protect" the consumer, but normally it only hurts the consumer. It's all
smoke and mirrors to hide the real reason the legislation exists. Have you
ever really thought about how greedy our society is today? There's a lot
going on under the covers that the average person doesn't see watching their
daily dose of the evening news. It's also kind of scary how many people are
actually fooled today with the lies that our society pushes on them. I hate
to be so blunt, but that is just how it is. I'm not saying that I am
"enlightened" above everyone else. I'm just stating the facts which really
can't be denied within reason.
Oh well...that's my .02 worth too. I've rambled on long enough.
Besides...most of you may not listen to me anyway once you find out that I
am from Alabama. Just from what I have been reading. :) Heheh...we have
just as many jokes about northerners. I just won't be as rude as to repeat
them on this forum. :)
Have fun! :)
Sincerely,
Blake Wylie
'70 MGB (coming soon)
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