Quote:
Originally Posted by onewhippedpuppy
Supply isn't dropping, profit margins are. There was a recent article (posted here) about how gas stations are making less per gallon than ever before. Those that can't make it up on food, beer, cigarettes, etc are slowly going under.
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Supply IS dropping...when there are fewer gas stations within 5 miles of me, the supply has dropped. That's why I specifically said the supply to the end user...you and me, standing there at the gas pump.
When you and your neighbor have stores selling the same thing, and you go through a price war, then he closes...do you revert to the old, lower price? Heck no! You've now not only cornered the market, but you've cornered it at a higher profit level, without looking like a jerk who just corned the market!