Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - How do you respond to gasoline "price fixing" allegations?

something · 11-21-2011, 10:19 PM

Price fixing is the term I would imagine a friend using who has no idea what they are talking about...

Sure, there is "price fixing" occurring. Prices are "fixed" according to the interplay between supply and demand. Of course, when you have an oligopoly facing one of the broadest and most inelastic demand sectors in the economy, you end up with short run potential for a large margin between production costs and consumer prices.

Add in the fact that government taxes the hell out of gasoline on a flat-rate basis and you have an imperative to drive prices upwards to salvage your profit margins. Edit: A large portion of gasoline is taxed on a flat-rate basis, not all.

I think high gas prices are great! They create an incentive for alternative modes of transportation and motivate consumers to consider other sources of energy.

If your friends are bitching about high gas prices and fixing schemes, tell them to ride a bike. It is a pretty easy solution to beat "the man".

11-21-2011, 10:19 PM	#20
something Crash and Bang Winger Join Date: Dec 2010 Location: Victoria Exp:	Price fixing is the term I would imagine a friend using who has no idea what they are talking about... Sure, there is "price fixing" occurring. Prices are "fixed" according to the interplay between supply and demand. Of course, when you have an oligopoly facing one of the broadest and most inelastic demand sectors in the economy, you end up with short run potential for a large margin between production costs and consumer prices. Add in the fact that government taxes the hell out of gasoline on a flat-rate basis and you have an imperative to drive prices upwards to salvage your profit margins. Edit: A large portion of gasoline is taxed on a flat-rate basis, not all. I think high gas prices are great! They create an incentive for alternative modes of transportation and motivate consumers to consider other sources of energy. If your friends are bitching about high gas prices and fixing schemes, tell them to ride a bike. It is a pretty easy solution to beat "the man". Last edited by something; 11-21-2011 at 10:28 PM.