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. Please comment knowledgeably on any conceivable economic justification for raising gas station prices, for gasoline that is purchased and held in inventory, prior to the market price increase. Only use information found in chapter three fundamental Economic Problem: Scarcity and Choice Textbook: Economics: principles and policy 14th by William Baumol
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. Please comment knowledgeably on any conceivable economic justification for raising gas station prices, for gasoline that is purchased and held in inventory, prior to the market price increase. Only use information found in chapter three fundamental Economic Problem: Scarcity and Choice Textbook: Economics: principles and policy 14th by William Baumol
Chapter2: Economics: Eight Powerful Ideas
Section: Chapter Questions
Problem 17P
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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.
Please comment knowledgeably on any conceivable economic justification for raising gas station prices, for gasoline that is purchased and held in inventory, prior to the market price increase.
Only use information found in chapter three fundamental Economic Problem: Scarcity and Choice
Textbook: Economics: principles and policy 14th by William Baumol
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