Purchase Solution

Record high gas prices

Not what you're looking for?

Ask Custom Question

When American gas prices hit a record, inflation-adjusted cost of $2.99 per gallon back in 1981, Hollywood released the movie "Gas," a wacky send-up of the gas crisis featuring a news reporter that investigates a story about stolen milk causing a rise in milk and fuel prices. The few memorable scenes from the film include long lines of disgruntled automobile owners at the gas pump, literally stretched for miles just to fill up for another unhappy week of driving.

While the movie "Gas" is certainly not worthy of repeat viewing, the trend towards higher gas prices has some Americans wondering if such madness at the pump could really happen. Recent news headlines reveal some unusual developments: bus usage is on the rise, Governor Schwarzenegger is urging Californians to conserve gasoline, and many Americans are cutting back on summer travel plans.

Whatever may be the results of rising gas prices, one can be certain that the causes will be shrouded in shouts of "price gouging," or in wild political speculation. From suggestions of chicanery at OPEC, to cries of global conspiracy at oilfield-services firm Halliburton, creative notions about what moves the price of oil and gas are sure to multiply--especially in an election year.

(JuLy, 2004)

According to the article, what are some reasons for rising gas prices and what do you think could be done about it?

Purchase this Solution
Solution Preview

According to the article reveals that the reason for gas prices is price gouging. Other reasons reveal that it may be due to oilfield-services firms jacking up the prices and unfair practices from OPEC. ...

Purchase this Solution
Free BrainMass Quizzes
Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

View More Free Quizzes
Related BrainMass Solutions

  • ATCO Group SWOT Analysis

    Weakness: High cost of distribution: The high cost of distribution of utilities such as electricity and gas increase the cost of ATCO Unreliability of utility trailers: There are delays and even breakdowns that make delivery through utility trailers

  • Economics

    "A high tax would hold down gas consumption" "Having permanently high gas prices would let the market, rather than incomprehensible, loophole-ridden Corporate Average Fuel Economy regulations, make the decisions on what kind of vehicles Americans

  • Risk and Expected Returns

    High gas prices, no further quality problems at Audi 0.25 26% 0.07 0.17 0.00 Mod gas prices, no further major quality problems at Audi 0.35 20% 0.07 0.17 0.00 Mod gas prices 0.3 14% 0.04 0.17 0.00 Low gas prices, major quality Q&A problems

  • Chevron Research: IFAS EFAS

    Marketing and technological feasibility assists the company in international development and production of gas and oil. Strong Track Record and Resources: Chevron has a strong track record in the oil and natural gas industry.

  • Completing an Internal and External Factors Analysis Summary

    - Well-built record and resources: In the oil and gas industry, the company has maintained well built records. The company has a large amount of assets and high market potential.

  • Decision Making in Managerial Economics

    Although oil prices fell significantly in late 2008 after reaching record highs, it is widely believed that oil prices will recover and escalate again when the current worldwide economic slowdown eases.

  • Managerial Economics

    According to the article by Heerwagen, the increase in the gas prices influences the consumer price index as well as the decision making of individuals. High gas prices tend to lead towards serious downtrend in the global economy.

  • example of a relatively inelastic demand curve

    Without getting into why gas prices ran up so fast (and mostly back down), what impact did the demand curve for gas have on prices? Usage? When the price was high? The answer is none!

  • Economics of a firm

    How Gas Prices Affect Our Economy. Retrieved December 9, 2008, from http://ezinearticles.com/?How-Gas-Prices-Affect-Our-Economy&id=532833 Heerwagen, P. (2006). How Will High Gas Prices Affect the Region's Economy in the Longer Term?

View More Related Solutions