4 ms·
> Prices are always set by supply and demand. True, but human psychology is a huge confounding factor. One area where this is evident is gas prices that "go up
by xnx 2y ago
> Prices are always set by supply and demand.
True, but human psychology is a huge confounding factor. One area where this is evident is gas prices that "go up like a rocket, and come down like a feather" in response to crude oil prices. Simple supply and demand does not explain this.
- dstroot 2y agoThere is inelasticity in gas prices. If the cost of gas goes up you still have to drive to work and the supermarket. Eventually you buy a more fuel efficient car or switch to an EV.