Looking at gasoline prices that are controlled by algorithms, we could be surprised by how they affect competition.
Since one state’s gasoline prices could be double what people pay in another state, we can ask if the price affects how much we purchase.
Comparing the purchasing power for a Big Mac and a gallon of gasoline, we can form hypotheses about worker well-being in developed and developing nations.
Because markets fluctuate, oil prices will rise and fall but the consequences of cheap oil can be unexpected.
Based on geography and demography, the impact of plunging gasoline prices varies but it is likely that we are spending 80% of it according to JP Morgan.
Gasoline prices rise faster than they fall because monopolistic competition provides retailers with some price control although their product is identical.
Since gasoline prices vary in the U.S. because of different state taxes and wholesale crude, the impact on consumption expenditures also is different.
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…