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 No.10091

File: 1636928666781.png (585.82 KB, 757x575, 757:575, The-Cost-of-Gas-(Californi….png) ImgOps Google

The costs of gasoline in the United States is going up. The simple, Econ 101 take on the situation is that supply normally would increase to take advantage of the situation. However, the oil industry isn't like your standard competitive market, and it looks as if the response from oil producing agencies as to whether or not more will be coming is a flat "no".

Details: https://www.npr.org/2021/11/14/1055068583/gasoline-prices-gas-energy-inflation-biden

In such circumstances, what should be done? Can anything really be done? Maybe not?

 No.10093

>>10091
>The costs of gasoline in the United States is going up. The simple, Econ 101 take on the situation is that supply normally would increase to take advantage of the situation.

Well, not quite, for a couple of reasons.  The first is within basic economics, cost is only a result of supply and demand.  Cost going up means something has already happened with supply or demand, not that something needs to happen.

The second is that gasoline is largely an inelastic product, meaning demand is going to be roughly the same regardless of cost.  We're slowly starting to see competitors that might change that, but for now none of them are commonplace and gas remains the staple.

>In such circumstances, what should be done? Can anything really be done? Maybe not?

The only thing that can be done is to attempt to use less gas, which as already mentioned is not necessarily simple.  For the average consumer, you can attempt to carpool more or something, but for stuff like shipping you're just kinda stuck until someone develops cheaper methods of shipping.

 No.10098

>>10093
When you say "you're just kinda stuck", I need to agree.


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