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This article addresses a recent issue which has impacted many US citizens living along the Gulf Coast. It discusses  the impact that Hurricane Isaac has had on the price of oil and gas in the past couple of days. The national oil and gas prices have risen by 5 cents in one day. Areas which were most affected include Ohio, Indiana and Illinois where prices rose by up to 14 cents.  This increase in gas and oil prices can be blamed on the destructive affects of Hurricane Isaac. Isaac has flooded the oil hub located along the Gulf Coast and has shutdown a main pipeline in the mid-west. This has created a limited supply of oil and gas. Now that oil and gas companies can produce less they have driven up the gas and oil prices to compensate for the lesser quantity of gas and oil sold. This relates to what we are studying in class as it illustrates how scarcity influences the price. A product retains a higher value as it becomes  scarcer. Oil has now become a more scarce resource in the US and therefore the prices have risen.

very constructive analysis of the problem. You seem very intelligent pascal.

Recently regarding the current change in the governments to attempt and reduce the gas emissions, the UK government has started taking action regarding the taxation of the cars. In order to try and promote the more green efficient cars and the hybrids that emit below 130g/km of CO2 will pay nzero on the first year road tax and for the cars that emit less that 100 g/km will also pay zero on road tax. Moreover, in order to discourage people from demanding less of the more heavy emitting CO2 cars such as big SUV the government will start taxing much more heavily those cars. They also will start changing the road tax, they will charge them according to their emissions. In conclusion the lower the emissions the cheaper the tax will be ultimately making the consumers shift their demand from the larger or higher CO2 emitting cars towards the more green and low CO2 emitting cars.

This is a demand article, because it talks about how the demand of Gas seems to not go up that much, or drop. Yet the Price of oil seems to rise a lot.