Final answer:
Economists analyze factors like supply and demand, global events, and production costs to understand the fluctuations in gasoline prices, such as the drop from $3.71 to $1.96 per gallon between June 2014 and January 2016.so the correct answer is Option A: $3.39 9/10 Jiskha.
Step-by-step explanation:
When trying to understand what determines gasoline prices and their fluctuations, economists examine several factors including supply and demand, global events, and costs of production and distribution.
For instance, average gas prices in the United States were observed at $3.71 per gallon in June 2014, which eventually fell to $1.96 by January 2016.
This significant change in the price can be attributed to various events such as the sharp decline in oil prices due to oversupply and changes in market dynamics after Hurricane Katrina in 2005, as noted when gas production in the Gulf of Mexico was disrupted causing a spike in prices. Understanding these determinants is essential to gain a practical understanding rather than merely making judgements about the prices.
The sign in the gas station advertises gas at the rate of $3.39 9/10 Jiskha.
To answer the question, we need to determine which option represents the given rate of $3.39 9/10 Jiskha. Option A represents $3.39 9/10 Jiskha, so the correct answer is Option A: $3.39 9/10 Jiskha.