Re: OT - Price Gouging

On Thu, 1 Sep 2005 13:29:37 -0400, "Dewey"
<dewey3kNOSPAM@xxxxxxxxx> wrote:

>The gas station on the corner by my work has raised their prices 3 times
>today. That's three times today alone. When I drove by this morning it was
>$2.899 a gallon. When I walked by on my way to lunch at 12:00 they had
>unleaded regular at $3.099. That's a 20 cent raise in about 3.5 hours. When
>I walked by on my way back from lunch it was $3.299. The gas in the storage
>tank is the same gas that was there yesterday when they were charging only
>$2.499 on my way home from work yesterday.
>
>Three of the four corners at that intersection have gas stations. They each
>have exactly the same prices posted. Well, to be fair, one of them was in
>the process of changing to $3.299 as I walked by. The other two had pulled
>it off already. Imagine in one of the three stations decided to charge $5.00
>a gallon. A free market would dictate that they would lose business to the
>other two stations. But in the gasoline market, the other two stations would
>fight to see which could match and then exceed the first stations audacity.
>There is no "free market" for gasoline. And don't hold your breath waiting
>for the Bush administration to do anything about it.

OK, so if a guy shows up at a flea market with a 1000 widgets
and puts them on the table with a price of $1 each does that
mean he has fixed the price for that batch of widgets? What if
20 minutes into the flea market he has sold 200 of them and sees
that they are wildly popular? Can he raise the price to $1.50?
What if in another hour he has sold another 400. Can he raise
the price to $3.00?

What is the difference between widgets and gasoline?
.

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