If I know you're willing to pay $4.00 for a gallon of gas, why would I ever sell it for less?

Question

If I know you're willing to pay $4.00 for a gallon of gas, why would I ever sell it for less?

Answer 1

Because I open up a gas station next to your $4.00 station, and I sell the gas for $3.99.

Then you get no more customers, untill you lower your price to 3.98.

And so on, and so forth, untill we both can't lower the price below what the gas costs us plus the operating costs of the business.

Answer 2

You would sell it for less because you don't want to crush an entire economy, thereby making your customers unable to get to work and unable to buy your product. like if you were a doctor and someone was dying, you could charge them $50,000.00 to save them, but would you? it's about greed vs. morality.

Answer 3

It is called the free market. How else are the oil companies going to make a profit otherwise? If you don't like it then travel by bicycle.

Answer 4

If you were gouging your consumers even though you could theoretically sell your gas for less, your competitor across the street would lower his price to attract your customers. Oil companies are in competition with each other, just like any other business.

Answer 5

because the gas statiion accross the street is selling it $3.99/gal

Answer 6

you are smarter than you look

Answer 7

What else am i suppose to do, i get pissed day in and day out but i have no other choice, i have to drive 45 min to work i have no one to ride share with, and no form of public transportation.  What do u expect me to do?