Government mandated price ceiling


The Price of Gasoline:

Would you rather have the forces of demand and supply determine the price of gasoline which you pay at the pump, or would you prefer a government mandated price ceiling? What problems would a price ceiling on gasoline bring?

There are two different schools of thought on how to lower gasoline prices and reduce US dependence on foreign oil. One can either:

1. Increase SUPPLY of oil (drilling offshore), or

2. Decrease DEMAND (finding alternatives to oil).

Can you graph how these two changes will bring about lower gas prices? Which school of thought do you subscribe to? Here are some articles to give you some perspective.

National Public Radio: Bush Calls on OPEC to Pump More Oil

https://www.npr.org/templates/story/story.php?storyId=18110373

USA Today: McCain pushes offshore-drilling plan

https://www.usatoday.com/news/politics/election2008/2008-07-22-mccain-energy_N.htm

The Economist: Greener than thou

https://www.economist.com/node/12321649

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Macroeconomics: Government mandated price ceiling
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