Assignment Papers-Explain what changes in demand and supply would be required to get the low price and the high price.
Currently, the national gas price average is $2.46, with states like Alabama having a $2.25 average price.
Most of us likely remember when gas prices reached a $4+ average. Professor Carden’s explanation that supply and demand influence gas prices indicate that the market is competitive, i.e there are thousands of firms all competing to bring oil and gas to the market and millions of consumers demanding that oil and gas.
This means that some combination of supply and demand changes caused the high price and another combination caused the low price.
1) Explain what changes in demand and supply would be required to get the low price and the high price.
2) I don’t believe what Professor Carden is saying. Explain to me why I am wrong or why I am right.
