Question

The Southeast part of the United States, specifically, parts of south Florida and Georgia, have experienced severe hurricanes in recent months. What would you expect to happen to gasoline prices? Why? What would you expect to happen to the prices of other goods and services in the area? Name those goods and services and explain why.

To help you figure this out, draw a supply/demand graph for gas--for yourself (not to submit to me); then compare your graph with those of your group members. If it’s easy for you to scan your graph and attach it to your post, do that. But if it’s not easy to do that, just describe your graph in words. That is, explain how you labeled the axes of your graph, what the demand curve looks like, what the supply curve looks like, how you labeled the equilibrium price and quantity, any curve shifts, and what happened to equilibrium price and quantity as a result of the curve shift(s) (changes in demand and/or supply).

Answer 1