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Gasoline prices drop again! Even with the expected increase in demand due to the 4th of July holiday, prices dropped again to the lowest level in about 12 years. Why? Partly because of the increase in the total world supply of oil and the U.S. expansion of shale and fracking production.
Read the following article from CNN: Gas prices are falling fast which helps explain this shift.
Is gasoline elastic, unitary elastic, or inelastic?
- Automobile sales have been slower than in the past, with many companies offering rebates, discounts, and low financing. Find information online about why companies are lowering prices. Is the demand for automobiles elastic, unitary elastic, or inelastic?