Why do gas stations fluctuate their gas prices? What’s stopping them from charging a high price even when the market is down?

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Why do gas stations fluctuate their gas prices? What’s stopping them from charging a high price even when the market is down?

In: Economics

4 Answers

Anonymous 0 Comments

Gas stations are a great example of a [monopolistic competitive](https://en.m.wikipedia.org/wiki/Monopolistic_competition) market. Gas stations have to use the market value because there is so much competition. this prevents stations from theoretically charging more for their gas and getting more money.

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