Comment on [deleted]
Obviously it is. When oil prices are high, do petrol prices go down?
A better question is, if the underlying cost of providing energy has increased, why are fossil fuel companies reporting record high profits.
Because when you charge 20% on something and the value of that thing doubles you make double the amount too. I think the UK government is way too cosy with big oil and is scared of asking for more
Think about what you just said for a second.
If the price doubles and the profit margin remains the same, that exactly means that the price is inelastic.
Which is directly synonymous with saying the price is not subject to supply and demand pressure because that would imply elasticity.
You pointed to price inelasticity as proof of price elasticity. God fucking damn.
idkmybffjoeysteel@hexbear.net 1 year ago
A better question is, if the underlying cost of providing energy has increased, why are fossil fuel companies reporting record high profits.
Biohazard@feddit.uk 1 year ago
Because when you charge 20% on something and the value of that thing doubles you make double the amount too. I think the UK government is way too cosy with big oil and is scared of asking for more
420stalin69@hexbear.net 1 year ago
Think about what you just said for a second.
If the price doubles and the profit margin remains the same, that exactly means that the price is inelastic.
Which is directly synonymous with saying the price is not subject to supply and demand pressure because that would imply elasticity.
You pointed to price inelasticity as proof of price elasticity. God fucking damn.