Notre Dame ReSource: Supply-and-demand driving gas prices | News | Notre Dame News | University of Notre Dame






	
	





  	Skip To Content
	Skip To Navigation
	Skip To Search






  
  
    University of Notre Dame

    
      
      Notre Dame News

      
      
    


    
    
      
        
        
        	
	Experts
	ND in the News
	Subscribe
	About Us
	


      
        
          
          
          
          
          
        

      


      
    


    
    
      	 Home
	 Contact
	 Search
	
          
          
            
            
          
          Menu
        
        


      
        
          
          
          
          
          
        

      

    

  

  
  

  

  
    	Home › 
	News › 
	Notre Dame ReSource: Supply-and-demand driving gas prices


    
      
        
          Notre Dame ReSource: Supply-and-demand driving gas prices

          
            
              
                
                Published: April 30, 2007
              

              
                Author: Dennis Brown
              

              







          

          
          
          

          
        
        
        
          

The basic economic principle of supply-and-demand – but mostly demand – is causing the average price of a gallon of gasoline to approach $3, according to a University of Notre Dame economist. **

Some of the blame for these high prices goes to supply problems in Africa, the Middle East andSouth America,said James X. Sullivan, assistant professor of economics.Just today (May 1), the Venezuelan government took over all remaining privately owned oil fields.Such events create greater uncertainty in oil markets.

However, a greater share of the blame for high gas prices should go to high levels of demand. Americans are consuming more gasoline today than a year ago. Moreover, high demand from rapidly growing countries, includingChinaandIndia, are keeping oil prices high, and this is likely to continue.

Sullivan added that, when adjusted for inflation,averageU.S.gas prices today, although high, remain below the peak in 1981.

He also cautioned against price caps.

Whenever gas prices approach their peak, some policymakers start to talk about capping gas prices,he said.Such price controls, however, would only make matters worse by creating gas shortages and long lines at gas stations.



* _Note to the media: Sullivans comments may be used in whole or in part. He can be contacted for additional commentary at 574-631-7587 or Sullivan.197@nd.edu 

_ *

TopicID: 22546

        

        
        
          
            

          

        
      
      
    
  
  
    	Home
	Experts
	ND in the News
	Subscribe
	About Us


  

  
  
    
     
  
  

  
  
    
      	For the Media
	Contact


    
            
    
      
	Office of Public Affairs and Communications


      Notre Dame News

      
        
          
            500 Grace Hall
 
            Notre Dame, IN 46556 USA
          
          
          
          
        

        
          	 Facebook
	 Twitter
	 Instagram
	 YouTube
	 Pinterest


        
      

      
© 2022 University of Notre Dame

    
    
      

        
      
      
        
          	Search
	Mobile App
	News
	Events
	Visit
	Accessibility


        
        
          	 Facebook
	 Twitter
	 Instagram
	 YouTube
	 LinkedIn