Who Benefits When Gas Prices Fall?

Who Benefits When Gas Prices Fall?

Assessment

Interactive Video

Business, Architecture

University

Hard

Created by

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The video discusses the elasticity of crude oil and gas prices, highlighting that gas prices do not decrease as quickly as crude oil prices due to retail gas stations' reluctance to cut prices. It examines the impact on transportation companies and airline stocks, noting that airline stocks have rebounded after a rocky period. The video also analyzes Amazon's shipping costs, emphasizing their contracts with UPS and the potential for future renegotiations. Finally, it explores how airlines like Delta benefit from falling fuel prices but may not pass these savings on to consumers through lower airfares.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

How does Amazon's shipping expense relate to its overall sales?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What challenges do airlines face despite falling fuel prices?

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