Originally posted by Bronco_f1
Unfortunately, that strategy wouldn't work. First, you can't make everyone spend $10 on gas, some of them would still buy the same quantity as they usually do. These are called "free riders". I see you use microeconomics in this topic, you have some decent logic, but gas is not the same as your story about eggs. First, eggs are not as essential to us as gas is. We can live without eggs, but it is most likely we can't live without gas.
Second, in your story the producers increase the price of eggs from 76 cents to $1 dollar. But then they increase the price to $2 and obviously no one starts buying. This works in the real world, but the OPEC and oil companies are smart enough not to increase the price of gas at 100% like the story about eggs. They will increase the prices slowly, as long as people are buying. People are still buying, maybe some buy less, but that can be compensated with the increase of price. The companies still maximize profit. Unfortunately, gas is a monopoly, and the companies behave with human nature, just trying to maximize profit like anyone would do if they were in their position
Second, in your story the producers increase the price of eggs from 76 cents to $1 dollar. But then they increase the price to $2 and obviously no one starts buying. This works in the real world, but the OPEC and oil companies are smart enough not to increase the price of gas at 100% like the story about eggs. They will increase the prices slowly, as long as people are buying. People are still buying, maybe some buy less, but that can be compensated with the increase of price. The companies still maximize profit. Unfortunately, gas is a monopoly, and the companies behave with human nature, just trying to maximize profit like anyone would do if they were in their position
well i guess were S.O.L
but i tried
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