we are doing a debate in class and we have to prove that gas prices should be raised. are there any pro's to raising gas prices? [from the gas company's point of view].
2007-01-21 13:32:25 · 7 answers · asked by cherrysours28 1 in Social Science ➔ Economics
we are doing a debate in class and we have to prove that gas prices should be raised. are there any pro's to raising gas prices? [from the gas company's point of view]. IF YOU DON'T HAVE ANYTHING PRODUCTIVE TO SAY DON'T SAY IT!
2007-01-21 13:38:19 · update #1
no
2007-01-21 13:37:08 · answer #1 · answered by iroc 7 · 0⤊ 2⤋
Many people would still buy gas at much higher prices than they do now; at different times and places in the past, this has happened. One company deciding to raise prices would lose business to companies that still sold it for cheaper, but if they all got together and decided nobody would sell gas for less than a certain price, they could probably either make more money or the same amount as now without using up as much of the limited amount of petroleum in the world, depending on how much demand there would be for gas at the artificially raised price. It would be illegal under American law for the companies to do this, but OPEC (the organized group of countries that controls most of the world's petroleum supply) does do something like this to an extent.
From another perspective, raising gas prices high enough such that people use much less of it would help reduce pollution, which could have benefits for the whole world, although there would be lots of economic problems associated with that.
2007-01-21 21:49:00 · answer #2 · answered by Geoffrey F 4 · 0⤊ 0⤋
If gas prices are currently at optimum (best priced to sell the most and make a decent profit), then raising gas prices will only decrease gas companies' profit because people will buy less in response. I can't think of any pro's from the gas company's point of view, but from the world's point of view, higher gas prices would make people buy less and be more economic with their gas, which of course is better for the environment.
2007-01-21 21:43:13 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Are you talking about natural gas? or gasoline? I'm assuming you are referring to gasoline.
In theory, raising the cost of something may reduce consumption of that commodity. Again, in theory, if consumption is actually reduced, the gasoline companies wouldn't necessarily make more profits because they would sell less gasoline.
Raise the price high enough and perhaps consumers will look for alternatives or ways to reduce their consumption. Examples: buying more fuel efficient autos; buying cars powered by something besides gasoline; driving in a manner that conserves gasoline. Also, lawmakers may respond by legislating lower speed limits; encouraging mass transit; stop building more and more highways.
These are just a few ideas. I'm sure you'll come up with some of your own.
2007-01-22 13:07:27 · answer #4 · answered by Kraftee 7 · 0⤊ 0⤋
Yea more money for them!.... lol hahahaha other than that... higher gas prices will mean not everyone can afford that will decrease the demand for oil and which will cause the depletion of oil to decrease and the pollution being released in the air to decrease but for oil companies it would not be a good thing because if demand decreases will then less money for them...
2007-01-21 21:37:13 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Yes, they do such taxes on cigarettes and alcohol to decrease usage. We need to stop being so dependant on gas so it is a good idea. It also encourages alternatives which are necassary for other reasons such as global warming, a limited supply of oil and innovation.
2007-01-21 21:37:27 · answer #6 · answered by fade_this_rally 7 · 0⤊ 0⤋
Boy you have gotten the bad point to debate. Good luck.
2007-01-21 21:36:04 · answer #7 · answered by Aliz 6 · 0⤊ 1⤋