Regular Sac Rag readers know that we love to debate the principles of supply and demand as they pertain to the Sacramento housing market. With that in mind, I’d like to offer up a preemptive discussion about gas prices and the proposed annual Gas Boycott that is surely making it’s way to your electronic mail inbox.
A boycott of a couple of brands of gasoline won’t result in lower overall prices. Prices at all the non-boycotted outlets would rise due to the temporarily limited supply and increased demand, making the original prices look cheap by comparison. The shunned outlets could then make a killing by offering gasoline at its “normal” (i.e., pre-boycott) price or by selling off their output to the non-boycotted companies, who will need the extra supply to meet demand. The only person who really gets hurt in this proposed scheme is the service station operator, who has almost no control over the price of gasoline.
While we’re on the topic, don’t forget to visit this site to find the lowest prices in our fair city.
The Sac Rag 