Monday, November 19, 2012

"Price Gouging" After Sandy

Notice that this gas station had gas.  One man informs the reporter that other stations are out of gas.  This one has gas precisely because they increased the price.  THE GAS STATION IS NOT FORCING ANYONE TO BUY THEIR GAS!  The price appears to be not high enough.  People are waiting in a very long line, so they must really want gas at this price.  Their demand for gas has increased due to the storm and they are willing to pay more for it.

Normally, gas is just used in their cars but now they are without centralized power production so many residents have a generator that they can use to keep the food in their fridge from spoiling.  Isn't that worth $5/gallon in unspoiled food alone?

Everyone should thank this gas station for raising its price so that there was still gas around for high valued uses like the generator above.  People who don't really need gas right now can wait until the price drops again before filling their tanks.  If the price stayed low, then everyone with 3/4 tank would try to top it off and there wouldn't be gas left for the generators.  Some people would benefit from paying a bit less for gas but others would be harmed by not getting it at all.

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