Although I have always been a believer in supply and demand of economics, I think I might have to be changing my views on the matter. The premise of the supply and demand is that the price will be driven by the supply of the product and the demand for the product. In other words, a supply will not be able to dictate the price the consumer pays. The consumer will.
With gasoline, this seems not to be true what-so-ever! The oil companies report record profits, record reserves and rape the consumer at the pumps. What is frightening, is that the consumer has become so conditioned to the high gasoline prices that the Six O’clock New reports the there is "good news for the consumer with gasoline dropping to 1.99 a gallon". I hear co-workers saying the same in the break room. These companies are having the most profitable time they ever have in history.
Pavlov would have been proud. We have become so conditioned to high gas prices that, most of us, believe it. Next week they are going to ring bells and watch us drool.
