How much would the price of gas be..

[Phoenix86]

Originally posted by: mugs

Originally posted by: halik

3 hurricanes, global warming, refineries at capacity and global increase in demand (cough china cough)... yeah theres no reason for price increase :roll:

Son you need to take some econonics...

Do they teach you in economics that when the cost of good sold goes up, so does the profit?

It doesn't cost any more to drill the oil out of the ground. The prices increases were not related to the cost increases, thus profits soared. Whodathunkit? 😉

 

[imthebadguy]

More, even if you think that gas prices would be determined by the world mkt, if the US had siginficant resources to produce its own oil, it would then implement import restrictions, therefore keeping the prices higher than the world market equilibrium price, and since the SR Demand for gasoline is relatively inelastic, there is really nothing you could do about it, however in the LR you would prolly see a lot of smaller cars in the street.

 

[dullard]

Originally posted by: Lonyo
How is that not gouging?
You just said the cost to them was the same, but the price doubled....
That's called ripping off customers. Doubling price for no reason is "fair"?
Yeah, they're businesses and they can do what they like, but I fail to see how it's fine to charge more when costs don't increase..

When all your other competitors on the beach are selling it for $10, and when customers are perfectly willing to spend $10, it isn't gouging. If you don't like true economic competition, you can go to a socialist country where everything is a monopoly.

This sand selling business is publically traded. It is your responsibility to your shareholders to maximize profit. It would be unethical not to maximize profit. Thats what businesses do. Clearly you couldn't sell sand for more than $10, since your competition would undercut you. Clearly selling sand for less than $10 would be unethical to your shareholders. The price is out of your control.

 

[ahurtt]

Originally posted by: Phoenix86

Originally posted by: mugs

Originally posted by: halik

3 hurricanes, global warming, refineries at capacity and global increase in demand (cough china cough)... yeah theres no reason for price increase :roll:

Son you need to take some econonics...

Do they teach you in economics that when the cost of good sold goes up, so does the profit?

It doesn't cost any more to drill the oil out of the ground. The prices increases were not related to the cost increases, thus profits soared. Whodathunkit? 😉

Alright, point taken but what was the reason behind the cost increase then if not gouging? Oil and gasoline are not really "luxury" items in todays world. They are necessities. It's one thing if retailers want to double the price of the XBox 360 to double their profit. But people NEED gas and the economy cannot function without oil. Raising the price of oil and gas sends ripples out into the ENTIRE economy. Energy costs go up, everything goes up. Because virtually everything is somehow linked to energy and our primary source of energy is petrolium based products. So now people have to pay considerably more for a basic necessity so that oil companies can post 70% profit gains? It isn't right.

 

[dullard]

Originally posted by: ahurtt
Alright, point taken but what was the reason behind the cost increase then if not gouging?

Internet stock mentality.

Its just like when people jumped on the internet stock bandwagon in the 1990s to chase them on their way up. Sure, the initial price rise was justified, but then as everyone and their dog bought internet stocks it suddenly became over-valued. Mass hysteria ensued. Same thing with people buying/trading oil futures. Jump on the bandwagon in mass hysteria in an attempt to make a profit. It'll come crashing down to normal ~$40/barrel numbers eventually.