Pundits often complain about gasoline price increases at the pump during periods of market oil price increases, stating that the gasoline at the gas station was purchased prior to oil market price increases. “Why should gas that is purchased and held in inventory, prior to market price increases, be increased in price? Price gouging!” are typical comments.
Pundits often complain about gasoline price increases at the pump during periods of market oil price increases, stating that the gasoline at the gas station was purchased prior to oil market price increases. “Why should gas that is purchased and held in inventory, prior to market price increases, be increased in price? Price gouging!” are typical comments.
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 20P
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Pundits often complain about gasoline price increases at the pump during periods of market oil price increases, stating that the gasoline at the gas station was purchased prior to oil market price increases. “Why should gas that is purchased and held in inventory, prior to market price increases, be increased in price? Price gouging!” are typical comments.
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