1. Analyze gasoline price hike statistics in the following scenario. In June 2008 the U.S. retail gas price jumped from $3 to $4 a gallon.

a. This is a 33% increase in price from January 2008.

b. During that time the total quantity of gasoline purchased fell by 3%.

c. Supplies of gasoline produced also decreased from 1 million barrels to 800,000 barrels.

d. No viable substitute had been created to replace gasoline.