Gasoline prices rise faster than they fall because monopolistic competition provides retailers with some price control although their product is identical.
At your local gas station, you might be seeing some sticky prices. Although barrels of West Texas Intermediate (WTI) and Brent Crude have steadily gotten cheaper, the price at the pump has had a less steep downward trajectory. One economic study…
Subsidies and taxes determine the price of gasoline. Whether gasoline is cheap or expensive, its price affects people’s incentives and national tradeoffs.
If you asked me how much I pay for gas, I would say $3.49 a gallon. Actually, though, the sign says $3.499. And that means, because the gas station rounds up, I am paying $3.50. Doesn’t $3.50 sounds like a lot…
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