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The logic error in this article is simple: The demand has not yet overcome the supply. It may well do so, but these sudden price increases are being made IN ANTICIPATION of decreased supply. Therefore, at the present time, the gasoline suppiers at some level of distribution are gouging.

If they waited until next week, or the week after, they might be justified, but not this week.

The other important factor in price increases/decreases is the money supply in a given area. As the money supply increases, that can cause inflation all by itself, regardless of supply issues. In fact, an increase of the money supply can be a definition of inflation. (Some say it is THE definition, which is true historically, but most people think price increases are inflation, when actually prices increases are the RESULT of inflation.)

But these are issues that are not generally taught in Econ 101, so it's understandable that people don't understand them. Supply and demand is taught, so people parrot that phrase without knowing the other factors.

..these sudden price increases are being made IN ANTICIPATION of decreased supply.

That's because the owners of the gas stations OWN the gas in the ground. They are free to charge any price, or no price. They can sit on it and leave it to someone in their will if they want.

Those are called property rights.

But these are issues that are not generally taught in Econ 101, so it's understandable that people don't understand them. Supply and demand is taught, so people parrot that phrase without knowing the other factors.

The rights of the individual are not commonly taught in schools, and they are disparaged by the media. Instead, collectivist "rights" and socialism are taught.

So it's understandable when potential buyers behave as though they can tell the seller the price they "should" charge for goods, and demand that this be enforced by the government or some other agency.

The author is calling for not capping prices and letting the market handle the situation. That's a conservative approach. What's the error in this article? Perhaps the liberal governor of Georgia could have done with reading this before signing the legislation he did last week. As other politicians, Democrat and Republican, could have done so as well before practically threating 'price gougers'

But like all politicians they play to the simple who want the government to think for them and to take care of them. I just hope the gas station in Atlanta made a killing off $5.87 gas

"If they waited until next week, or the week after, they might be justified, but not this week."

If they waited until next week, how would they pay for their full tank? With the profits they make this week they could only afford to fill 3/4's of their tank.

Which do you want? The inefficiency caused by only partially filling tanks, or the higher price this week so they can afford to fill their tanks all the way?