[xnx]

> Prices are always set by supply and demand.

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.

[dstroot]

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.