I have never, ever understood this. Gas is for the most part is a simple commodity. Sure, some prefer a premium brand (like Shell) to a cheaper one (like ARCO), but I can’t for the life of me figure out why there is such a wide variance even within a single mile or two of a city (and amongst the same brand!) I would think that supply and demand would reign supreme here. It’s the same stuff.
You get that one gas station that charges $0.10 less than all the others in the area and the lines are out to the street.
So where are supply and demand?
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Not sure how you reasoned out that it doesn’t apply to gas, but it definitely does. If I want gas right now and I don’t care what it costs, thats supply and demand. If I care about cost and am willing to drive across town to get it for cheaper, that’s supply and demand. The demand is high because people want convenience for the close one. Demand is lower at the farther away one so that’s why it’s cheaper.
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