The supply and demand of ethanol and gasoline

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It's estimated the peak of oil production will peak in 2035, and gradually decline causing an increase in gasoline prices. To help reduce the dependence on imported oil and avoid large fuel price increases the U.S. government created incentives for ethanol production. However, the current price of ethanol is relatively high making it less competitive in the fuel market.

What is an example of an implementation that protects residential customers from large fuel price increases? (Subsides/Incentive)

What would result to the supply and demand of ethanol and gasoline?

Reference no: EM131103680

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