Some have complained in the past about gasoline prices being too high, and many political leaders have debated whether there should be a cap or maximum for gasoline prices during a time when prices are rising rapidly. What would be the impact of such a policy? If prices are capped, how would gasoline then be rationed? Would this be an effective policy? Are there losses in surplus?
We all know with today's economy, prices are rising while jobs are phasing out and the average family struggles to make ends meet. This includes filling their gas tanks. The problem with putting a cap on gasoline prices deals a lot with supply and demand. If a cap is placed on the price of gas, the demand will go up and the supply will go down. This could impact society on many levels. The good side of this is that it would force the government to look into alternative sources of energy, perhaps more drilling on US soil, less on foreign soil. This could give the job market a tremendous ...
The solution discusses the debate on increase of fuel prices.