National Average of Gas Prices 2000-2001

National Average of mishandle Prices 2000-2001

        In the beginning of the summer, when most battalion drive to vacation spots throughout the United States, bungle prices reached record highs. In June 2000, the national average was $1.68 per gallon and in some larger cities; the prices soared to $2.00 and more per gallon (Facts.com, 2005). Americans were furious non only because consumers were paying more at the pumps, but because ascending enkindle costs have triggered inflation. Americans realized that if inflation began to rise, a recession could be triggered as had occurred in the 1970s and 1980s (Facts.com, 2005).

Affects on Gas Costs on the Economy 2000-2001

        Fuel prices began to rise because the come forth of crude oil was not meeting the ever-increasing conduct for fuel. The Organization of vegetable oil Exporting Countries (OPEC), a group of nations that determines what the guidelines for world fuel exports should be, displace the production quotas in 1999, even though the demand for oil was rising around the world ((Facts.com, 2005). During this time, in the United States, the demand for oil was increasing due to the strong economy. Asias economy was in any case rebounding from an economic crash in 1997 (Facts.com, 2005). These two factors allowed more consumers to belong further distances in larger cars.



Consumers began to feel more reassured in the economy and were not so money conscious. sooner of the small, fuel-efficient cars, consumers began to buy sport-utility vehicles (SUVs) that required large quantities of gas. Gas prices were a sawhorse refuse in 2000 than they were in 1987 (Facts.com, 2005). Gas costs were lower per gallon than Coca-Cola, milk, and orange juice and significantly lower than olive oil and eye drops (Facts.com, 2005). Consumers would use this reasoning to justify purchases of the fuel hungry SUVs. Americans were encouraged by the government...

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