Question

Hurricane katrina damaged a large portion of refining and pipeline capacity when it swept through the gulf coast states in august 2005. as a result of? this, many gasoline distributors were not able to maintain normal deliveries. at the preminus?hurricane equilibrium price? (i.e., at the initial equilibrium? price), we would expect to see

Answer 1

A result of the intensity and magnitude of the hurricane it damaged the pipeline. Gasoline distributors affected the prices because of the loss of supply and the unstable transportation or delivery. Stability of prices or equilibrium was achieved after reconstruction and changes that had transpired. Expected prices hikes on products would also be seen afterward.