On Sat, 06 Sep 1997 17:01:40 EDT gofastmg@juno.com (Rick Morrison)
writes:
>
>On Sat, 06 Sep 1997 09:01:17 -0400 Kai Radicke <mowogmg@pil.net>
>writes:
>>
>No kai you wouldn't control the prices. You only control the supply.
> The price is set when and only when you sell. not before.
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
>
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