The insanity of gas pricing | Off Kilter
Last updated 9/23/2020 at 12:01pm
There are a lot of things that make perfect sense, economically. Likewise, there are a lot of things that do not.
I got to thinking about this earlier this week as I read about gasoline prices inching up.
If you look at the gasoline market from the 10,000 foot level, you will notice certain things. First, in the long term it is virtually impossible to be at odds with the law of supply and demand. That simply stated says that – this is Economics 101 – if the supply of anything remains fixed while demand for the item goes up, so must the price go up.
In reverse, if the supply remains fix...