If you had widgets that became much more valuable due to a widget shortage would you raise your price?

Of course you would, you evil price gouger. NOW will you quit whining about high gas prices?





P.S. - You do not have a birthright to cheap gas.

If you had widgets that became much more valuable due to a widget shortage would you raise your price?
yes I would
Reply:No but I do believe we have a right to trust our elected officials to prevent us from being screwed %26amp; lied to about WHY we are paying so damn much %26amp; to devise ways to lessen our dependency on foreign oil.
Reply:Yes I would. Supply and demand; that is the ruling factor of price.





But if I were to create an artificial drop in supply, by let's say locking up half the worlds widgets in a cellar, and therefore driving the prices up, well there are certain situations where that could be called price-gouging.





I don't think this is necessarily illegal, but in certain situations where the product in question is essential for every day life (like, food, clothing, housing, fuel), and the inflated price is having negative impacts across the economy, the government can step in and shake things up. It is quite justified to do this. After all the government is a tool of the people, and if the majority of people are suffering because of an artificial supply shortage well the people should flex their muscle.





There are certain products a government won't get involved in when such products are being artificially inflated. Diamonds for example are drastically overpriced because most diamonds are being kept out of the market by a single family; the De Beers family.





Nobody cares if diamonds are artificially inflated because nobody needs diamonds to live.





But we need oil to live. No we don't have a birth right to cheap gas, but we do have a birth right to have our government fight for a fair market place.
Reply:I'd hold the widgets off the market, thereby driving the price up even further, that way I would not have to raise the price, it go up all by itself.
Reply:The problem is that the prices are not based on a regular system of 'supply and demand'... They are based on a market system that can fluctuate based on just perceived appearances of what may or may not be an issue, etc. (For example, prices can go up because of a war in the Middle East, even if it doesn't actually affect the shipments of oil).. Prices go up right away on the assumption of a problem... and thus the oil companies, etc make record profits... Because their cost of getting the oil isn't going up.





If it was truly tied to a regular pricing scheme like average products are, it would be a whole different ball game.





Edit:





Yah, I do understand the basic idea of supply and demand etc.. And I do know that the price of a barrel of oil is based on a market system that can be moved based on perceptions of traders, etc..





BUT if I didn't answer totally the way you wanted, you didn't have to be rude about it either. Snotty comments that a community college could help me are offensive.. Besides, you have no idea how much education I actually have..





And, to answer your initial question, yes.. if I had the widgets, I am sure that I would take advantage of the fact that I could sell them for a higher price. I was just simply referring to the fact that the gas price system is not simple supply and demand, etc.. AND in all honesty, I don't blame the companies for raising their prices.. They know they can.. and they do. It's all about making money just like everyone wants to do. And I also agree that people don't "deserve" cheap gas.. just like they don't "deserve" cheap computers and homes, etc..





Just wanted to clarify that I do agree with you on the idea of the pricing..