protectionist
Diamond Member
- Oct 20, 2013
- 56,899
- 18,275
- Thread starter
- #421
No the rental situation is an anomaly. It is caused be an unusual spike in population.The reason they're not charging double or triple, is the same answer as to the question you ran away from in Post # 381.
Post #381 didn't explain why gas station owners aren't charging $12 a gallon.
The answer is that generally, the firm cannot raise prices above what their market price is because doing so cause their SALES to drop,
Exactly.
That's why your landlord can raise rents to $900 (or $1090), because they can do
so without causing their sales to drop.
And then the convenience storeowners (cartelling among each other) decide to jack up their prices to $500/gallon. Or $100/gallon. Or $50/gallon. They could that, without any price control law to stop them.
There is no price control law on gasoline, so why isn't it $50?
If oil tripled in price, should the government mandate that gas prices stay where they are now?
What would happen to the gasoline supply if they did?
I already told you why gas isn't $50. Slow learner ?