gasoline[1] - Pretty fixed demand (inelastic demand) ◦...

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Click to edit Master subtitle style  5/26/11 Gasoline J. King, MVCC
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 5/26/11 Main Ideas
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 5/26/11 BLARRRRGH GAS PRICES ARE TOO HIGH BLARRRRRGH THE GOVERNMENT SHOULD  DO SOMETHING ABOUT IT BLARRRRRGH IT’S THE FAULT OF  (corporations, the government, Saudi Arabia,  China, etc.) What I would like this to _not_ 
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 5/26/11 Unique economics of gasoline Gasoline as a microcosm of world  Main Ideas
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 5/26/11
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 5/26/11 But wait …
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 5/26/11
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 5/26/11 How has Europe dealt with this?
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 5/26/11 http://tigger.uic.edu/depts/ahaa/imagebase/chim aps/mcclendon.html How _had_ Chicago dealt with 
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 5/26/11 Remember, Europe’s cities  tend to be older than  America’s and tend to be  more rail-based (like  Chicago’s used to be).
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 5/26/11 Pretty fixed supply (inelastic supply) Limited number of places you can find it Expensive to find Expensive to make and extract Expensive to ship
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Unformatted text preview: Pretty fixed demand (inelastic demand) ◦ You’ll buy about the same amount regularly, no matter what price it is ◦ Can’t store it, really Unique Economics of Gasoline 5/26/11 Decreased supply ◦ War in Libya, Iraq, uncertainty in Middle East Increased demand ◦ Getting ready for summer driving ◦ Industrial demand from China and developing world Why is the price increasing? 5/26/11 Taxation, mostly Cook County’s “unique” tax Why are gas prices 5/26/11 Nothing, really! What can you do about it? 5/26/11 Demand side: ◦ Less vacations ◦ Fuel innovations – ethanol, hybrid, electric ◦ Smaller cars next time you buy one ◦ Gasoline substitutes Supply side: ◦ More oil drilled ◦ Oil Shale, Oil Sands ◦ Synthetic oil? What do high gas prices do?...
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This note was uploaded on 05/26/2011 for the course GEO 102 taught by Professor Jasonking during the Spring '11 term at Moraine Valley Community College.

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gasoline[1] - Pretty fixed demand (inelastic demand) ◦...

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