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Why Doesn T Gas Prices Have A Set Price By The Government?

456 Words2 Pages

Gas prices should not have a set price by the government. Although its seems as if there would be no problem and gas prices would always stay at a reliable price, there are many factors that would make this have a major impact on the economy. Such as if the government sets the price too high, then people will not be buying gas and will not be able to go to places that need to go and there would be a surplus of gas. If they set the price too low then there would be too many people buying it so there would be a shortage of gas. If the government sets a price, it would be bad for all the gas stations. Gas stations are continuously in a competition with each other to see who is making the most money and who has more customers making their prices change all the time. If the government sets a price then a lot of gas stations won't do well and might shut down because there would be too many that will not be …show more content…

If the government sets the price too high, many people would not have enough money to get to the places they need to go to such as school, work, and medical places. On top of that, many gas stations would go out of business because the demand for gas would be low so they are losing profit. However, if a lower set price issued then the demand for gas would increase causing long lines and a major shortage of gas. Gas stations would have to give out less amounts of gas and set limits of how much gas that people can get so it can be fair for everyone. We would also run out of oil and gas quickly. Gas would be a demand more than it's supplied. As a consequence of setting a gas price, many gas station would struggle to mange to stay open and work as they normally would. If the prices raise, they don't get any business but if the prices are lower, they lose money and run out of gas so it's losing situation for them all around. They won’t be making enough money so they would have to shut

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To: Les Singer; Secretary, DOE From: Policy Group Office of Secretary Les Singer Subject: Answers for the reporters I know that there a many questions being asked in regards to gasoline prices and comments made by J.R. We as the policy group are doing the best that we can to work on answering all of your questions and coming up with explanations to make sure that you fully understand. The answer to your question on why price ceilings will prevent the laws of supply and demand from operating is actually quite simple, but before answering it you must understand what a price ceiling is.

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