Currently, there are a number of challenging situations that are occurring around the world, but we will focus on Vancouver. The main issue impacting people in Vancouver is that everything has gone up in price and the consumer has to pay more. For example, the price of fuel has gone from $1.89 in late January to $2.33 per litre in late May 2022. That means in January, if you filled up your vehicle with 50 litres, it would cost $94.50 and now, it will cost $116.50.

a) Considering the price of fuel has gone up, explain what might be driving the price up higher. Describe the relevant theory and apply the theory

b) Share and describe two theories: i) a theory that applies where there is an overall increase in prices in an economic system and ii) a theory that measures the prices of typical products that supports the theory you defined in i) and how it works

c) Do you think government should be involved to help control the price of fuel? If no, explain why not? If so, how might business and government interact?