Stassel on Gasoline Prices Video Analysis Watch: Stassel on Gasoline Prices http://cdn.abcnews.com/stossel/free/Stossel/070825…
Post: your response to the following question: Do you agree with the following statements? Using the video and material in Chapter 3 of your textbook, carefully explain why or why not.
Warning: be careful to not confuse demand and supply with quantity demanded and quantity supplied.
a. Gasoline prices rose during 2006 because the demand for gasoline grew more slowly than supply.
b. Assuming that gasoline and gas-guzzling automobiles are complements, we can predict that the demand for gas-guzzling automobiles increased.
c. An increase in the price of gasoline will lead to a decrease in the demand for gasoline and an increase the supply of gasoline causing the price of gasoline to fall.
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