Wellll...that's not quite how demand curves work, yes fuel use is inelastic in the short term but there will be substitution if it looks likely to stay high. Which is happening noticeably here in the UK. The numbers show an uptick in EV purchasing and a reduction in consumption of fossil fuels.
Greedflation is just another way to state some very old economic concepts - inelastic demand and market power.
In other words if there is a supplier with little or no competition (monopsony) and a product that people will buy almost regardless of the price in the short term (inelastic demand) then yes the supplier can jack the price up while not losing sales...until people substitute alternatives.
This demand curve can be found in any high school economics text book from the middle of the 20th C it's nothing new.
And if monopsonists bleed the customers too hard they will find substitutes, even if the product is as basic to life as water or food. People will move countries if they're starving for example.
Smartarse quips aside you surely do understand basic economics right ?
The problem with the pseudo-intellectual economic theories is it falls flat on its face when faced with the real world, corruption, price fixing, imbalanced power dynamics, propaganda, etc etc.
3-4 years. That’s how long it will take to repair and rebuild the damaged infrastructure. Assuming trump or some other politician doesn’t fuck it all up again.
But by then inflation will have driven the cost up, so IMO the price isn’t going below $3/gal.
18 Comments
CompactFlax@discuss.tchncs.de · 44 pts · 64d
Most obviously, it has been established that there is continued demand at the “new” price, so why drop it?
thanksforallthefish@literature.cafe · 18 pts · 64d
Wellll...that's not quite how demand curves work, yes fuel use is inelastic in the short term but there will be substitution if it looks likely to stay high. Which is happening noticeably here in the UK. The numbers show an uptick in EV purchasing and a reduction in consumption of fossil fuels.
Jakeroxs@sh.itjust.works · 5 pts · 63d
Greedflation doesn't care about demand curve.
thanksforallthefish@literature.cafe · 3 pts · 63d
Greedflation is just another way to state some very old economic concepts - inelastic demand and market power.
In other words if there is a supplier with little or no competition (monopsony) and a product that people will buy almost regardless of the price in the short term (inelastic demand) then yes the supplier can jack the price up while not losing sales...until people substitute alternatives.
This demand curve can be found in any high school economics text book from the middle of the 20th C it's nothing new.
And if monopsonists bleed the customers too hard they will find substitutes, even if the product is as basic to life as water or food. People will move countries if they're starving for example.
Smartarse quips aside you surely do understand basic economics right ?
Jakeroxs@sh.itjust.works · 2 pts · 63d
No shit moron
The problem with the pseudo-intellectual economic theories is it falls flat on its face when faced with the real world, corruption, price fixing, imbalanced power dynamics, propaganda, etc etc.
homes@piefed.world · 9 pts · 64d
It’s almost as if oil companies are run by profiteering warlord psychopaths
flandish@lemmy.world · 8 pts · 64d
of course not. this was the plan all along, so it would seem.
RememberTheApollo_@lemmy.world · 5 pts · 64d
3-4 years. That’s how long it will take to repair and rebuild the damaged infrastructure. Assuming trump or some other politician doesn’t fuck it all up again.
But by then inflation will have driven the cost up, so IMO the price isn’t going below $3/gal.
quick_snail@feddit.nl · 5 pts · 64d
Good news. I just hope it breaks $100/gallon before 2027
panda_abyss@lemmy.ca · 4 pts · 64d
Well a bunch of capacity was blown up with a 5 year restoration timeline, so…
DarkFuture@lemmy.world · 4 pts · 63d
Why would a company lower their prices when they've raised them and people keep buying?
We will never have the same gas prices again because a felon rapist pedophile needed a distraction from raping children.
This is America.
Gerudo@lemmy.zip · 2 pts · 64d
Trouble in the world? Gas prices explode overnight.
Trouble "over"....well you see it's complicated.
Takashiro@lemmy.today · 1 pts · 64d
Weren't they supposed to get worse? As they run out of reserves and the measures taken to reduce the impact from the Hormuz closure.
Chivera@lemmy.world · 1 pts · 63d
Oil billionaires are fine with earning more per gallon.
PumpkinSkink@lemmy.world · 1 pts · 63d
What's that saying about oil prices? "Up like a rocket, down like a feather"
FundMECFS@piefed.zip · -1 pts · 63d
Not complaining tbh.
DarkFuture@lemmy.world · 3 pts · 63d
People with families and jobs they have to get to in order to support those families are.
The world is not ready to fully transition to fully electric vehicles. Until then, higher oil prices hurt normal people the most.
FundMECFS@piefed.zip · -1 pts · 63d
I don’t believe electric vehicles will solve this. Buses and public transit will.