[JackDanielsOldNo7]

I have taken Econ 101. I am also a CPA. What some Freepers around assume that if someone is a capitalist that he is honest and no gouging goes on. How come gas sells for 2.80 a gallon in Fayetteville and 2.50 in Raleigh. Econ 101 does not explain that.

[Sam Gamgee]

How come if you go to Yellowstone Park it costs you 50% more for a Big Mac than say in Renton, Washington? I went to the McDonalds website to find out. Each McDonald’s franchise is independently owned and each owner has the freedom to charge whatever it is they like? Is McDonald’s gouging because it knows once in Yellowstone Park, consumers have less choice to go somewhere else?

[Sloth]

What some Freepers around assume that if someone is a capitalist that he is honest and no gouging goes on.

How is charging what people will pay not "honest"? The only dishonesty that would come into play would be if all gas station owners in an area were in collusion to keep prices artificially high. Is that what you are suggesting?

[MeanWestTexan]

"How come gas sells for 2.80 a gallon in Fayetteville and 2.50 in Raleigh. Econ 101 does not explain that."

1. Real Estate price is a factor. The price of gas in Zip 90210 is higher than in 90211. The price of gas on the interstate is higher than in town. The price of gas on a easy-to-get-to corner is higher than a U-turn location.

2. Local distribution costs. Different local blends cost different amounts. (Sulfer reduction being the biggest cost factor, followed by ethanol requirements).

3. Local taxes

4. Speed of local's consumption. A busy local's gas will rise and fall faster than a slower locals.

etc. There are many variables.