True, but human psychology is a huge confounding factor. One area where this is evident is gas prices that "go up like a rocket, and come down like a feather" in response to crude oil prices. Simple supply and demand does not explain this.
There is inelasticity in gas prices. If the cost of gas goes up you still have to drive to work and the supermarket. Eventually you buy a more fuel efficient car or switch to an EV.
True, but human psychology is a huge confounding factor. One area where this is evident is gas prices that "go up like a rocket, and come down like a feather" in response to crude oil prices. Simple supply and demand does not explain this.