2007-03-14 18:29:23 · 4 answers · asked by truong v 1 in Social Science ➔ Economics
Because they can....The oil companies have us at their mercy and they know it. They also know that the current President & adminastration won't do a darn thing to change it since they are also making money hand over fist!! They neither know, care or understand what these prices are doing to the adverage American household. It will be intresting to see if this becomes an issue in the 2008 elections....I hope it does.
2007-03-14 18:39:29 · answer #1 · answered by Barbiq 6 · 1⤊ 0⤋
gasoline prices keep going up because gasoline is an inelastic good, meaning that we will continue to buy the same amount despite the price increase. The oil companies know that so every now and then they raise the prices to "milk" some extra money off of us.
2007-03-15 01:39:27 · answer #2 · answered by Dan E. 1 · 0⤊ 0⤋
Because we keep paying.
Simple economics - supply and demand. In this case, the demand is such that the supplier can raise price and make more money, so why not raise it? When it reaches a point where raising it further won't make them more money because people stop buying, then the price will stop increasing.
2007-03-15 01:35:18 · answer #3 · answered by djt0704 2 · 1⤊ 0⤋
Demand - Supply- Uncertainty- Punters- Terrorist-George Bush- Hurricanes-Hummers-5 Cars per family - Nobody wants to take trains / public transport - Why I share my car !, Snobs - Speed riders
Blame it on any one or any combo ,then we go Long drive.
Read freakonomics you will know more..
Baby you can drive my car ........n baby..
2007-03-15 01:43:50 · answer #4 · answered by poke_a_man 3 · 0⤊ 0⤋