Shortages happen when you have anti-gouging laws.
Imagine if prices were allowed to rise during a shortage. It would encourage conservation by consumers. Most importantly, selling gasoline would be much more profitable in NY than in the rest of the country. This would encourage suppliers to ship gasoline into NY from other parts of the country to take advantage of those profits. This would help stabilize prices and direct the vital resource to where it is most needed.
“Imagine if prices were allowed to rise during a shortage. It would encourage conservation by consumers. Most importantly, selling gasoline would be much more profitable in NY than in the rest of the country. This would encourage suppliers to ship gasoline into NY from other parts of the country to take advantage of those profits. This would help stabilize prices and direct the vital resource to where it is most needed.”
I enjoyed your comment - Very well said. A market price reflects the relative value associated with a product. In fact, the mere possibility of recovering high prices may provide incentive for individuals and for business (who would be incurring storage and inventory costs) to create stand-by inventory of needed products just on the possibility there is an emergency at which time the products may be sold at higher prices to recover costs and make a profit.
Nice try but until today when the EPA lifted its’ “designer blends” mandate, it was illegal to ship gasoline into New York from another state.
-— Most importantly, selling gasoline would be much more profitable in NY than in the rest of the country. This would encourage suppliers to ship gasoline into NY from other parts of the country to take advantage of those profits. ——
Yes, YES! A thousand times, YES!!!
Yeah, it pisses me off too.
And its not really funny. Lives hang in the balance.