Microeconomics project
Aug. 25th, 2005 10:51 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
muck_a_luckThis is such an intriguing proposal in microeconomics, I thought I would mention it.
There is a chain e-mail going around suggesting that as a group, we could all work together to lower gas prices.
I don't send chain e-mails.
The gist of it is that prices are controlled by both supply and demand.
The hypothesis proposed is that the recent increase in gas prices at the pump is not a supply problem. There's plenty of supply to bring prices back down to below $1.50. I have no idea, and can't be arsed to go find out for myself.
If that is the case, the hypothesis continues, the reason gas prices have gone up so drastically is because we, the consumers, will actually pay the outrageous prices being charged, so why not charge them. Price gouging, essentially.
The proposed solution, don't but from Exxon or Mobile. If they start to suffer losses, they will begin lowering their prices back to a reasonable level, then the other suppliers will have to follow suit.
The proposed price for beginning to buy again from Exxon or Mobile is when their price gets back down to $1.30.
The e-mail wanted to be sent to 30 people I know, in hopes of being sent to 24 million people or something like that. Well the e-mail can screw itself. But as an exercise in microeconomics, this has some appeal to me. So the 24 million people reading this journal should all go rushing out and see if they can impact the price of gasoline from the demand site of the graph!
Have fun! :)
There is a chain e-mail going around suggesting that as a group, we could all work together to lower gas prices.
I don't send chain e-mails.
The gist of it is that prices are controlled by both supply and demand.
The hypothesis proposed is that the recent increase in gas prices at the pump is not a supply problem. There's plenty of supply to bring prices back down to below $1.50. I have no idea, and can't be arsed to go find out for myself.
If that is the case, the hypothesis continues, the reason gas prices have gone up so drastically is because we, the consumers, will actually pay the outrageous prices being charged, so why not charge them. Price gouging, essentially.
The proposed solution, don't but from Exxon or Mobile. If they start to suffer losses, they will begin lowering their prices back to a reasonable level, then the other suppliers will have to follow suit.
The proposed price for beginning to buy again from Exxon or Mobile is when their price gets back down to $1.30.
The e-mail wanted to be sent to 30 people I know, in hopes of being sent to 24 million people or something like that. Well the e-mail can screw itself. But as an exercise in microeconomics, this has some appeal to me. So the 24 million people reading this journal should all go rushing out and see if they can impact the price of gasoline from the demand site of the graph!
Have fun! :)
