This is a perfect example of the butterfly effect right here. It all starts with one price increase, and everything else soon follows suit. But that first change, what triggers it? In this case, the scarcity of fuel. Oil prices go up and corn, a potential alternative fuel source, also rises in price. But in this situation there doesn't seem to be much of a solution. Oil is scarce, so gas prices will go up if nothing is done. On the other hand, if corn does become reliable as a fuel source, then cereal prices rise as well. I suppose this is where prioritizing comes in; what's more important, fuel or cereal? It's tough to say.
-Economics Student
1 comment:
I think it is safe to say that with the problem of oil reserves dwindling in the future, and the world's dependece on it, that it is very important. We should pursue every option we can right now to find an alternative for oil. If the supply of fuels is increased, then the price will not be so inelastic.
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