a key reason that our gasoline prices elevated rapidly from 2006 to 2008 was:
A) tight global supplies and high prices B) war in the middle east C) greed by oil exporting countries D) inflation.
d inflation?
I disagree.
http://money.cnn.com/2008/05/20/news/economy/gas_price_history/?postversion=2008052010
the war in the middle east
B may be the best answer. But A is also a possibility. What do your text materials say?
1What are welfare payments or consumer subsidies? 2 what is the south African government providing and to whom? 3 what are the costs and consequences of providing the subsidies and welfare? 4 are there any welfare or subsidy payments that should be reviewed or added? 5 are there any current subsidy or welfare issues that are being discussed or addressed in the parliament or in municipality?
the war in the middle east
The correct answer to the question is A) tight global supplies and high prices. Gasoline prices increased rapidly from 2006 to 2008 primarily due to a combination of factors such as tight global supplies and high prices. To arrive at the correct answer, we need to consider the economic factors that influenced the rise in gasoline prices during that period.
To find the answer, we need to analyze the economic factors affecting gasoline prices during that time frame. Here's how you can identify the key reason:
1. Research historical data: Look at data on gasoline prices from 2006 to 2008. This information can be found in various sources, such as government reports, industry publications, or economic databases.
2. Examine global oil supply and demand: Analyze the global oil market conditions during that period. Factors like disruptions in oil production, changes in demand from emerging economies, or geopolitical events can all impact oil prices.
3. Consider global supply chain issues: Assess any constraints or disruptions in the supply chain that could have affected gasoline prices. This could include production issues, transportation bottlenecks, or natural disasters affecting oil-producing regions.
4. Analyze pricing mechanisms: Consider how gasoline prices are determined. Factors like crude oil prices, refining costs, distribution expenses, taxes, and market competition can all influence the final price at the pump.
By analyzing these factors, it becomes apparent that tight global supplies and high prices were the primary reasons for the sharp increase in gasoline prices from 2006 to 2008. Inflation, while an economic phenomenon, may have had some secondary influence but was not the key driver behind the sudden surge in gasoline prices during that period.