When gasoline prices recently reached a price of $2.00 per gallon, public policy makers considered cutting excise taxes by $0.10 per gallon to lower prices for the consumer. In discussing the effects of the proposed tax reduction, a news commentator stated that the effect of tax reduction should lead to a price of about $1.90 per gallon, and, that if the price did not drop by as much, it would be evidence that oil companies are somehow conspiring to keep gasoline prices high. Evaluate this claim.