Is supply and demand affecting gas prices (as in eyes of economy)?

Answer 1

i think that pure greed is the cause of the outrageous gas prices. there is always going to be a demand for petroleum products sluggish economy or not.

i do not understand how the oil companies are continuously allowed to gouge us...and by law they must report corporate earnings, so earning reports are public accessed information......hmmmmmmm BILLIONS in profit must not be enough for the bastards.

Answer 2

Yes, supply and demand affect every price. As for the person that answered with "pure greed", I'll let you in on a little secret: you're not as smart as you think you are. If you deem the price of a good too high, then don't purchase it. Are the people making a Mercedes Benz greedy, or have they produced a luxury item which only the people who deem the car worth $50,000 will buy? The point is, a good is only as expensive as the consumer thinks it is. So, like I said, if you don't like the price, no one has a gun to your head to buy it. Furthermore, gas companies make an average of $0.08/gallon in revenues whereas the tax-happy government makes about $0.40/gallon in tax revenues; who's greedy again?

Answer 3

The price of all goods are affected by supply and demand, but the supply of oil is affected by a cartel OPEC and also has a history of geopolitical events influencing it. The demand for oil is inelastic in the short run, so small changes in supply can produce big price changes.

Answer 4

Well, not as much as people think. The price fluctuates based on many reasons that are completely unrelated to supply and demand?

For one, if you live in or near a city gas is more expensive, right? Because there's more people there and they can charge more, right? No.

Gas is more expensive near cities because of Federal regulations about emissions. That gas is cleaner and more expensive to make.

Right after Sept. 11 gas prices went down, right? Because of demand going down, right? No.

Gas prices went down because of the Middle East's fear of backlash (this is complicated and my answer grossly oversimplifies it) so they dropped the price.

It's interesting to note that much of the price of gas is defined by the fears and interests of the Middle East. Not necessarily by demand and supply.

Answer 5

further and further third worldwide international places economies are increasing subsequently they are using greater oil. maximum of Asia is a robust occasion. The oil generating international places keep the oil spigot became right down to maintain fees severe (there is your grant and insist) right here is a few thing who's time has come. i've got self assurance the oil companies would desire to be nationalized and the revenue bypass back to the folk in the style of decrease taxes.comparable with our communications structures. the place I stay in China as a transplanted American, the two are nationalized and a gallon of gasoline expenses some greenback much less, and my cellular telephone invoice is obscenely little. approximately $15 a month and that i exploit it extensively. Plus, I pay 0 revenues tax, and tax on a house is quite small to non existent, plus I have not have been given any earnings tax, in spite of that I make appreciably greater then the common person. there is particularly some gross revenues to be made off of the two which provides the folk greater disposable earnings. A win for the government, a win for the folk, a win for our financial equipment. it is going to easily pizzzz off the fat cats, one that some like to help, yet they do no longer provide a rats at the back of approximately their supporters. in case you like paying loads of taxes and helping the prosperous, with the aid of all ability provide me a thumbs down. in case you desire to lessen your burden, provide me a thumbs up. (needless to say some will make the monumentally stupid selection) EDIT: Oil is unlike water, which has many materials. the respond decrease than mine from John B is purely isn't thinking. Oil is a commodity that may not available from greater then some materials. people purely have not got a call. confident they are able to seek around to maintain some cents a gallon, yet that's approximately it. think of roughly it. =============== existence is so undemanding, yet we insist on making it complicated Confucius 551 - 479 BC =============== Peace Jim .

Answer 6

yes, gas is no different from any other good.

there is a bit of "price stickiness", i.e. gas companies are slower to decrease prices than to increase them, but if there is a long-term decline in demand, they will decrease prices eventually.

Answer 7

yes