Skip to main content

View Diary: Profits soar as oil companies victimized again by high gas prices (111 comments)

Comment Preferences

  •  Actually, the oil companies are right... (0+ / 0-)

    They don't have control over their prices.

    Price is determined by supply and demand. When the weather starts improving in Spring and early Summer, demand increases, driving prices up.

    Yes, the oil companies have high profits when prices go up because of producer surplus. But that doesn't mean oil companies can just lower the price and reduce their producer surplus. If they lower prices with demand remaining constant, you will have unmet demand - creating shortages. Yeah, high gas prices suck. But gas is a limited resource, and price is a pretty damn good way to determine who gets access to limited resources. The other alternative is drill baby drill, and I doubt many here will advocate for that. :-)

    Try looking at things another way.

    by atheistben on Thu Apr 28, 2011 at 10:31:41 AM PDT

    [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site