Gas prices
MariettaEcon This article discusses the possible reasons why gas prices have gotten worse in the last couple months. Gas prices, on average in the United States, have risen 17 cents in the last couple of months. The first reason they discuss is the idea that crude oil and other variable costs needed to make gasoline have gone up. We have learned in Micro 211 that if variable costs of making a product go up, that company is not going to be able to make as much of a product. The other reason this article discusses is that oil refineries were damaged in the hurricane. Our government is spending money to repair these refineries, which also can jack up the price. The article states that the price raising will stop soon. I also believe the war in Iraq is hurting our gas prices, because that is where the United States gets alot of its crude oil.
1 comment:
Jarrod, where did you hear that the US government is spending money to repair the refineries? I would think that the private oil companies would bear the responsibility to pay for their own repairs. Also, exactly what portion of our oil imports come from Iraq? I don't think it's "alot" as you indicated. Check this site here.
Post a Comment