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Econ issue: Price competition during gas pumps.. I will be trying to appreciate the economics for why a natural gas station possibly cientos from another can charge ~$ more versus first? I be aware that their costs can be higher, or desire to have profit might possibly be higher, etc. I'm just wondering why their business doesn't mostly disappear altogether because people select the less expensive other. I've seen this repeatedly though so Maybe it's sustainable someway. Does anyone care to supply an opinion why? Demand inelasticity Because raising the retail price $ won't really make a difference to demand. Those who pump gas usually are inelastic. Until a elasticity is better, then a $ are going to be take effect. Some years back when gas went from $ to $ people screamed 'death for you to BIG OIL'! We all will quit driving a car / quit purchasing gas on Mondays... Yet days later most of us were driving such as always, buying petrol on Mondays... We slowed down from to for a couple of weeks. Fast fwd prior gas to $, $ per gallon. Identical speech, same bull-shit. I am still driving generally. % of whilst pass me... I imagine that when gas gets because of $ / gallon consequently big trucks will start to sell again. America features a short term ram problem. The price fluctuation is the main strategy They drop the purchase price down when the fresh model year is developed, so they can sucker everyone into your SUVs on shut down out or the new model year. Proper everyone is secured and loaded for their new SUVs, they raise the amount to new highs from the spring and summer when a lot of the driving takes set. Big Oil is dumb nevertheless they are much smarter as opposed to American consumer.
Bitcoin questions/criticisms Here are my concerns in addition to questions:. There is not any "deposit" reserve ski behind Bitcoins as i understand it, essentially it relies on a market clearing apparatus. In these cases, demand can go to "" and fee drop substantially, as easily seeing that supply can go to "" and value rise dramatiy. Banks were originally formed as capital reserves to guard against such mismatches, and lend stability.... State issued foreign currencies are backed by the printing press as well as taxation as money reserves (not preservation). As much as I don't want these implementations, they do satisfy the deposit reserves dependence new orleans online newspaper on.. There appear being capital controls being don bitcoins in some locations not less than, and these investment capital controls apply any other way to individuals (not to the "currency"). that when Cyprus must put capital regulators on, it was don all depositors, not on a subset thereof. This is analogous to needing sets of buyers, preferred and frequent. I don't must tell you that usually loses throughout these scenarios. Interested in responses that target these points, thanks.
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