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Inside the Vault
Inside the Vault is an economic education newsletter for elementary- and secondary-level teachers. Distributed twice a year.
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Fall 2007
Why Do Gasoline Prices React to Things That Have Not Happened?
Gasoline prices sometimes go up to reflect increased future costs. Customers get upset and cry, "Price gouging!" Really, it's just good business. Prices automatically speed up or slow down the commodity flow in order to maximize performance, or what economists call allocative efficiency.
Nominal vs. Real Oil Prices
