In the end, there is only good economics and bad economics.
Tuesday, April 10, 2007
Why Did Gas Prices Rise Over the Weekend?
Predictably, gas prices rose over the weekend. While prices have been rising for a few weeks now for reasons related to wholesale oil, we always expect gas prices to rise on this past particular weekend every year. Why?
2 comments:
Anonymous
said...
My guess would be that gas prices rose because it was Easter weekend, a weekend when many people travel by car to see their families. Higher demand causes prices to rise in order to keep the supply.
On the first try, nice job anonymous! Of course, there is a shift to the right in demand as more people want to drive to meet family, this creates a shortage that forces prices to rise so that markets may clear.
This blog is set-up mainly to help my Econ students quickly pass information both to myself and others in class, as well as to provide real world examples of the topics discussed in class.
2 comments:
My guess would be that gas prices rose because it was Easter weekend, a weekend when many people travel by car to see their families. Higher demand causes prices to rise in order to keep the supply.
On the first try, nice job anonymous! Of course, there is a shift to the right in demand as more people want to drive to meet family, this creates a shortage that forces prices to rise so that markets may clear.
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