"If the $3.00/gallon price at the pump was merely a reflection of cost, why did they make profits of 75%?"
If it's not a gouge, what is it?
Please explain this to me too, somebody. Or provide a link or reference. Be simple. Thanks in advance.
See posts 11 and 15. They explain it very well.
You make widgets that the market will buy at $1.00. You have a 50% markup so you make $.50 per widget.
There is heavy demand for widgets and the market is willing to buy them at $10.00. Your cost goes up to $5.00 and you maintain your markup. You make $5.00 a widget.
The people don't like the fact that you're making $5.00 a widget so the goobermint takes over the widget industry. The price of widgets is set at $.50. Widgets are cheap. There are no widgets to buy.
Or if you will look up USSR history not so many years ago. You could buy all the cardboard shoes you wanted at dirt cheap prices....but there were none to buy.