One could but America tends to be more densely packed than Australia (By a lot IIRC) thus it's much more likely that bids will get undercut solely due to the gas price increase. My dad was a brick mason and would have to tow heavy equipment (backhoe, lift, etc...) to job sites.
Well, I've never been in the US and only once in Australia, and then almost only in the Broome area, which is very sparsely populated. However, we have a similar problem here in Sweden, where the population is quite spread out in the North. Prices have increased from about 8 SEK (1.25 US dollars, or so) per litre perhaps ten years ago to 12-13 SEK (2-2.10 US dollars, I'm guessing) per litre now, so we've sort of had this problem already.
As I don't have a driver's license myself, I'm quite detached from these problems, but I'm guessing that if all companies that compete for a certain job have to raise their prices with a certain amount due to petrol price increases, it would sort of even out. Of course, this assumes that the companies are equidistant to the place of work, or the actual amount of used petrol is the same through other circumstances.
I know my dad's company -- it's really him, a friend of him, and that friend's youngest son -- still have a lot of work despite these fuel price increases, simply by being very good at what they are doing, and having a reputation in the area for being quick, efficient, and nice to talk to.
In my case I'm pulling a travel trailer because my wife and I are theatre folk and we travel to where the work is. Because of our cats it's hard to find places to rent for 4-5-6 months so we take our house with us so to speak. Would it cut us totally out of work? No. but it would greatly reduce our choices.
Well, I guess that is a totally different kind of situation then, which I didn't think of. Would it be totally impossible to raise ticket prices with a small percentage if the fuel costs increased a lot? I am assuming (hoping!) that you actually get people to come and watch you; would as many come if the price was slightly higher?
When I mentioned rual areas I was thinking more of the walnut, almond, cattle famers in the area of California I'm in right now. Of course there's wheat, corn, rice, etc. in other areas. What would be the increase in food prices based a $2 gas increase? (For the record that last bit is an honest question. I don't know what factors would go into an equation to figure that out.)
Hmmm... I am guessing -- from my own experience up here where we need to import everything because our ancestors chose to place their country in an idiotic location where nothing grows -- that the stores would at least quote that as a reason to raise prices. Whether or not it actually has any effect? I have no idea. Here they'd happily raise the price of satsumas or bananas or whatever noticeably because of a thing like that, despite the fact (1) that the enormous quantities they import must serve to make the price increase per fruit negligible.
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(1) Well, it's an opinion at least, and I hope it is a fact as well.