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As a result of refinery troubles in Southern California, gas prices have hit record highs (some parts of L.A. reaching 5 dollars for a gallon of gas). The demand for gas remains constant (people in L.A. have a strange affinity with their cars) however, the demand has dropped around 2.5%. People have been griping about the price increases, but as people cannot live without their cars, they have no choice but to deal with it. The supply is limited and therefore the price increases.

This article states that the price of gas will drastically drop by as much as $0.50. Gas companies are predicting that there will be a huge increase in gas consumers when the prices start to drop. This will also be affected a lot by the presidential campaign because gas prices are a huge issue.

Gas prices in California have soared to over $5 a barrel in recent weeks. This causes everyone to feel pain at the pump and try to fill up fewer than they have in the past. However, people cannot live without gas, and thus the gas industry has not suffered.

This article talks about a oil company in Russia that controls on the gas exports and oil giants are trying to convince the government to liberalize exports. It also mentions how even if they were liberalized, it would take a while to change who exports gas because of loyalty from consumers.

This article shows the price mechanism of the increase in the price of gas cylinders from 2008 March to 2012 october. The increase in price was 263%

The article talks about positive externalities in relation to hybrid cars. The marginal private cost is higher than the marginal social cost therefore there is an excess demand for P1 price. it then talks about how the government wants to subsidize hybrid cars that are more eco friendly and gas efficient but they aren't that subsidized as other projects are more important such as health care

This article talks about how Fresno's supply of the raw material required to make concrete, asphalt, road base and other building products is decreasing quickly. Since this raw material is used by a majority of industries, the decreased supply will have a significant effect.

This article is about how the aggregate supply in Fresno County is reducing due to the lack of reserves of raw materials such as mines. The aggregate reserves is less than 11 percent of the 50 year demand, and mining operations are estimated to have less than 10 years to end. If mines can run out, so can oil and gas. We should be alarmed that our aggregate supply of country might also decrease due to lack of oil.

Economies of scale is the increase in efficiency as a company gets bigger. In this case the economy of scale is the creation of larger shipping containers. The great thing about scales of economy is that it has lowered the production cost of products such as the creation of t- shirts for some companies. However as companies have more products to they needed bigger containers to transport their goods. As the supple of t- shirts increases the size of the ship that transports the goods needs to increase in size as well. Maersk lines , the world's biggest shipping container company has decided to increase the size of his ships. The company plans to build 20 ships with a capacity of carrying 18,000 twenty-foot equal units. The company does this out of efficeny in transportation and gas cost. The larger the ship the more it can carry and the less times the ship will have to travel back and forth to transport goods. The increase in ship size than is an example of the economies of scale when bigger = more efficient.

This article showed the relation between the price and demand. The oil companies need guar gum powder for fracking to get oil, this increase the demand of guar and the guar price rised up. In our textbook, the relationship is a little bit different. Our textbook said as the price increase the demand of the product will increase, where as in this article as the demand increase the price will increase. This article showed me the mutual relation between the price and the demand.

The Congress is preparing to cancel subsidy for corn ethanol and the tax break for oil companies. The tax credit deepened the budget deficit. It also raised corn price and food price as farmers started to replace other crops with corn. However the House of Representatives won't pass any law that would end the subsidy because their paymasters want the subsidy to keep the demand up.

This article focuses on the upcoming challenges and goals of the United Nations climate talks in Doha, Qatar. The talks aim to discuss how to remedy global warming that could lead to a planet up to 6 degrees warmer in the future. To do this, carbon emissions must decrease by about 5% each year. Topics at the talks may include current issues of greenhouse gas pollution and deforestation, especially with improvements of the carbon market. Businesses may soon face strong encouragement to accept these proposals, as climate change begins to result in not only impact on society but also private costs of businesses. These externalities, previously external but becoming increasingly internal, may soon force large business leaders to reconsider their impact on the environment.

The article is about how hybrid cars bring positive benefits and promote people to use hybrid cars for many good causes including costs are efficient for the owner because unlike, fuel the prices does not change, environmental friendly and electric motor requires more energy compare to gas so it can speed up more and going up difficult places.

This article talked about how an Iceland company Carbon Recycling International ehf, saw the rising demand and planned to increase output. It made the firm more efficient because recycling carbon reduced cost and saved resources. It also reflected the situation of perfect competition. Oil companies are price takers, they can't control the price of oil. And the product are homogeneous: oil form different company don't have significant quality difference.

This article is particularly interesting due to the fact that it shows the negative aspects that can arise when a monopoly is present

This article is about how the chairman of an Indian Oil Company has no control over the price mechanisms of his product, and thus is in great debt. In response to this, he want the government to take over price controls for oil. Although government price control has not worked out particularly well in the past, in such a dire situation it is easy to see how this might be viewed as a good solution

This article talked about the elasticity of gasoline. As the price increase 10 percent, the demand reduce by 7 percent, which prove that gasoline is inelastic product. That make sense because gasoline is a necessary product: to keep the cars run.

I really enjoyed this article because it analyses the elasticity of Gasoline, and in the book i believe that they said that it was always 0 but here they say otherwise. Very interesting article.