Rachel Zellie, Chapter 1, Question 6

The example of the gas prices in 2008 Wheelan used to support the idea, "Becaue we use price to allocate goods, most markets are self correcting," I thought was really interesting because I had never heard the statistics surrounding the situation. I thought it was nice to hear that most of the behavioral changes such as buying subcompact cars, driving less, and using public transportation increased. But I was really surprised and intrigued by the statistics regarding motorcycle drivers. Wheelan listed the numbers that when gas prices rose for every $1 increase there was an additional 1,500 motorcycle deaths annually. These statistics were really interesting because not only were they surprising but they statistics show how the market directly relates to our lives. But overall, Wheelan was making the point in this passage that the markets are self correcting; because as gas prices rose oil producers began pumping more oil to take advantage of the prices. Because they were pumping more oil the supply grew greater then the demand resulting in a decrease in gas prices. In conclusion, this was a interesting and surprising passage that resonated with me because I had never realized how prices and supply and demand all worked together.