Gas prices dropping after last weeks spike

Reference no: EM131245982

In an article titled, Gas prices dropping after last week's spike, that was published in The Atlanta Journal-Constitution newspaper on August 29, 2011, Mike Morris wrote:

"After a spike last week as Hurricane Irene threatened East Coast oil refineries, Atlanta gas prices have started falling, according to a website that tracks how much we pay to fill up our tanks. Metro Atlanta's average price early Monday of \$3.65 for a gallon of regular unleaded was a penny cheaper than on Sunday, and 4 cents below the national average".

Respond to this topic relating this paragraph to what you have learned in Chapter 4. What caused prices to rise and then to fall? Are there other products that may have experienced changes in prices as a result of Hurricane Irene? Why?

To help you figure this out, draw a Supply/Demand graph for gas for yourself (not to submit to me); then compare your graph with those of your group members. If it's easy for you to scan your graph and attach it to your post, do that. But if it's not easy to do that, just describe your graph in words. That is, explain how you labeled the axes of your graph, what the demand curve looks like, what the supply curve looks like, how you labeled the equilibrium price and quantity, any curve shifts, and what happened to equilibrium price and quantity as a result of the curve shifts (changes in demand and/or supply). [You will have to be able to explain how to draw a supply/demand graph on the first exam.]

Personnel departments responsible for setting specific rates

Most large firms have personnel departments responsible for setting specific rates of pay for each job. In performing this function, how much discretion does the personnel dep

Consumer surplus is indicated by this demand function

You have 100 identical customers, each with relevant demand function Q = 20-P (where Q is the hours per week and P is the per hour fee). How much consumer surplus (per custome

Sales or purchases of government securities on open market

Explain whether each of the following is a (1) discretionary fiscal policy, (2) an automatic stabilizer, or (3) not a fiscal policy. Government spending on infrastructure, suc

Fed responded by using the tools of monetary policy

The 1990s boom was followed by a recession in 2001. The Fed responded by using the tools of monetary policy. Identify two different monetary policy tools (or “mechanisms”) tha

The quotas increase spending on domestic products

The exchange rate between the U.S. and Japan is floating, e.g. determined by the market. Suppose the U.S. government imposes import quotas on Japanese products. The quotas inc

Capitalized cost for indefinite operation of the power plant

A new municipal power plant is being built in Highfill, AR. The initial installation will cost \$25 million. Experience shows that major repair and renovation will have to occu

Discuss whether the equilibrium outcome of the game

Two firms, A and B, are situated next to a lake, and it costs each firm €1,500 per period to use filters that avoid polluting the lake. However, each firm must use the lake's

Federal reserve injects money into the banking system

he Fed began paying interest on reserves in October 2008. Holding all else constant, what effect would this have on the money supply? When the Federal Reserve injects money in