|The oil and gas market have experienced some dramatic changes in recent years. Some of the issues and consequences
associated with high production are discussed in a video of an interview with Lynn Cook from The Wall Street Journal (see:
Based on information contained in the video and other information you might find, discuss the likely effects the recent fall in oil
and gas prices are likely to have on the gasoline market. Specifically, based on your knowledge of supply and demand models: (a)
discuss the effects falling oil and gas prices on the gasoline equilibrium quantity and price; and, (b) what price do you expect
regular gasoline will be in Pullman WA on Feb 15, 2016 and on May 15, 2016 and explain why.
It may be useful to graph these scenarios and look for additional information before writing your answer. Please do not include
your graph in your submission, but describe the results in your written analysis. Imagine you are preparing your analysis for a
local news report where the audience is not likely to be familiar with supply and demand analysis (models).
Writing : Ideas are well-organized.
Application of economic
|Paper Comments||The class is ECON 101
The book is Paul Krugman and Robin Wells. Microeconomics in Modules, Third Edition. Worth Publishers,
New York, 2012.
The oil and gas market have experienced some dramatic changes in recent years. Some of the issues and consequences
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