Related Web Links – Module 9 - Supply and Demand: Quantity Controls

OPEC oil embargoes took place in the 1970’s.  With the limits on price increases due to the Nixon price controls, gasoline shortages developed nationwide. Drivers found themselves in long lines waiting to buy gas that was often rationed when they did reach the pump. Drivers waited in gas lines for hours at a time. People would cut in line, fights broke out, and sometimes there was gunfire.

Go to: http://en.wikipedia.org/wiki/1973_energy_crisis

In the 1970s, there was a rapid increase in the price of oil due to controls placed on output by OPEC countries. The result was a significant jump in the U.S. rate of inflation. Starting in 2003, oil prices started another rapid appreciation, primarily due to an increase in demand as discussed in the following column by Krugman.

Go to: http://www.nytimes.com/2008/05/12/opinion/12krugman.html