09.14.08
Gas Prices and Simple Economics
Alex Tabarrok at Marginal Revolution explains the real reason gas prices are high:
My wonderful mother is upset, like pretty much everyone else, at the price of gas. “Well, the hurricane has knocked out a lot of production on the gulf coast,” I say. “Yes but there’s plenty of gas in the pipes that was produced before the hurricane - the suppliers are gouging.” she responds. Arrghhh….must resist, must resist, must be ….nice. “mmm,” I say. You and my Econ 101 students (103 actually), however, are not so lucky…
Read the rest: Marginal Revolution: Response to my Mother
