Why did prices rise sharply over the past five years

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Reference no: EM13157450

Be sure to explain your answers completely and show you read each article and thought about what it said.

Question1: According to the articles, why did prices rise sharply over the past 5 years? Answer in terms of a supply-demand analysis, saying what specifically has happened to supply and demand and how this has increased prices.

Question 2: Do the higher prices support that oil companies are "price gouging"? In economic terms, can price gouging exist and if so, under what conditions? What would be the likely impact of price controls or an excess profits tax on the market for oil?  Explain, using supply/demand concepts.

Attachment:- Price gouging.txt

Reference no: EM13157450

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