On Monday 30 January 2006 11:06, Jeff Schroeder wrote: > Dennis wrote: Exactly. The gasoline market has a nearly perfectly inelastic demand curve (meaning it's nearly vertical). This means that almost 100% of any price increase (incurred because of new taxes, higher production costs, or just plain because they want a new Ferrari) can be passed on directly to the end customer. This also means that the profit-maximization-point on the supply-demand curve is really only capped by taxes, internal tactical decisions regarding competition, and politics. *If there were an oligopoly on oil, they could all just raise the prices together and we'd all just have to pay it.
* Oh yeah, there is isn't there--it's called OPEC, no? -- Respectfully, Nicholas Leippe Sales Team Automation, LLC 1335 West 1650 North, Suite C Springville, UT 84663 +1 801.853.4090 http://www.salesteamautomation.com /* PLUG: http://plug.org, #utah on irc.freenode.net Unsubscribe: http://plug.org/mailman/options/plug Don't fear the penguin. */
