Can any econ experts out there tell me why prices skyrocket at the slightest "hint" of a decrease in production. But when production "actually" increases, it takes weeks or months for prices to go down?

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White 1999 Lightning
Build Date 7-26-99
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Snuglid
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I am by far no econ expert, to me experts are highly paid a#$h%$#s! They get paid for their opinion, which usually makes it biased, remember I said usually. In Alaska, which I think is one of the last states where the people acutally have a say in government, one state prosecutor is looking into the whole gas buisiness. He reported that they come up with their prices as if they were trucked to Alaska form California, we all know they make lots of auto gas up there, and they do not truck gas from california. He also told the paper about the characteristics of the rise and fall of prices compared to the cost of crude oil. The reason why oil companies raise the price so quickly is to make a little extra money, they feel justified when oil prices rise, and they tend to take their time lowering the price when oil prices fall, to make yet another penny. Some more of my thoughts, I am off to my chemistry test now...

 

Funny how they "all" do this together, go up quickly and fall back slowly. no one wants to quickly fall back and get some of their competitors business. if your small and do this, it's called price fixing and you get to go to jail.

 

That is what the prosecutor up there is trying to do, get enough info to take them to court. A judge just granted him access to some of their files and thats how he came up with that info. I have since left for college and I really hope he is getting his case put through.