Gasoline prices at the pump go up and down and oil costs


Gasoline "prices at the pump" go up and down and Oil "costs per barrel" go up or down, but they do so at different rates and even in opposite directions sometimes. We want to think that demand and supply controls prices where the cost of crude oil is set by the same economic conditions that determine the price of gas. What are these mismatched trends (graphs of each are shown in the following web links) telling us about how demand and supply work in the market?

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?&&

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?&&

Solution Preview :

Prepared by a verified Expert
Business Management: Gasoline prices at the pump go up and down and oil costs
Reference No:- TGS01483839

Now Priced at $10 (50% Discount)

Recommended (97%)

Rated (4.9/5)