Gas Prices Jump After Pipeline Fire
by: Alison Sider and Nicole Friedman
Nov 02, 2016
Click here to view the full article on WSJ.com
by: Alison Sider and Nicole Friedman
Nov 02, 2016
Click here to view the full article on WSJ.com
TOPICS: Supply and Demand
SUMMARY: A major fuel artery for the Southeast and East Coast was disrupted for the second time in two months, underscoring the fragility of a delivery system that is relied upon by tens of millions of people.
CLASSROOM APPLICATION: Students can evaluate the effect of a negative shock to the supply of gasoline on the equilibrium prices of gasoline (in particular in futures markets).
QUESTIONS:
1. (Introductory) What is the effect of the Colonial Pipeline fire on the supply of gasoline to the East Coast?
2. (Advanced) What are "gasoline futures"? What is the effect of the Colonial Pipeline fire on the prices of gasoline futures?
3. (Advanced) What is the effect of the Colonial Pipeline fire on the amount of gasoline shipped by trucks?
1. (Introductory) What is the effect of the Colonial Pipeline fire on the supply of gasoline to the East Coast?
2. (Advanced) What are "gasoline futures"? What is the effect of the Colonial Pipeline fire on the prices of gasoline futures?
3. (Advanced) What is the effect of the Colonial Pipeline fire on the amount of gasoline shipped by trucks?
Reviewed By: James Dearden, Lehigh University
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