Are Recessions Good for Gas Prices?
and is replicated here as part of the SERC Pedagogic Service.
In this activity students will be investigating the effects of supply and demand on weekly prices of gasoline in the United States from 2006-2010. Students will use FRED data from the St Louis Federal Reserve to investigate the change in conventional gasoline prices (in dollars per gallon) over time and in particular during recessions.
The factors that impact gasoline prices can be explored and how those variables change over time and during a recession. Students will have the opportunity to interact with another student to present and report the difference between impact factors on supply and demand on the price of gasoline during a recent recession period.
Supply and Demand- investigating changes and impacts in equilibrium prices. This will become useful when analyzing real world changes (when both supply and demand shift) to identify potential impact factors.
Context for Use
Description and Teaching Materials
This activity allows students to work as part of a group, because without the partner the students will not be able to complete the writing assignment.
Student Handout for Gas Prices (Microsoft Word 2007 (.docx) 14kB Jun2 13)
Supervisor Memo (Microsoft Word 2007 (.docx) 13kB Jun2 13)
Teaching Notes and Tips
Writing- The students will be evaluated on their ability to describe the impact they investigated (demand or supply) and how well they included their partner's argument (the opposite view).
References and Resources
NY Times: http://topics.nytimes.com/topics/reference/timestopics/subjects/g/gasoline_prices/index.html
CNN Money: http://money.cnn.com/news/specials/gasprices/