Chapter 5

http://www.cbc.ca/news/story/2000/10/19/nb_gascost001019.html
Summary
The gas price in New Brunswick has raised to its highest price ever, which disappointed many people who are attempting to switch from using fuel to gas. It has been said that having natural gas in New Brunswick will be a "magic elixir" to aid the growth of the province's economy, however it is affected by the high price, since the gas of price has increased 86% in just the past year.( from $2.85 per million BTUs to $4.04 per million BTUs) In the same year, having the oil price shoot up, the price of gas grew even faster. Don Barnett, the Assistant Deputy Minister of Natural Resources, stated that we can look at the rapid raise in price in two ways. One of the reason is that drilling for gas needs a huge amount of money and so that is why prices raise. The bad side of the raise in price is the effection it has on us consumers. Moreover he think that they should increase the supply of gas and so that the price can be brought down. However, the Irving Oil. which is a company selling oil in New brunswick is not able to lower the price. Regardless of the rapid raise in price, natural gas is still very attractive due to its efficiency.

Relation to the chapter
This article is related to the chapter with regards to the mentioning of rising price, which is related to inflation. Recalling the facts from the chapter, there are two types of inflation - cost push , and demand pull. Moreover, having the price of gas rising affects how a customer spends with regards to the amount of income they have. These are all topics discussed in the chapter. I think gas price's raise is a demand pull inflation, since gas is a valuable resourse which is not renewable, and that everyone is using it nowadays because of its usefulness and efficiency, the demand is rising quite fast. Because of that, the price raises. On the other hand, it is also a cost push inflation because since drilling for these gases uses up a great amount of money; thus, the cost of exploration of gases pushes the price of the gas up.

Personal Reflection
I think it is evident that the price of gases has rised at a rapid speed. It has been a lot of years since I have seen the gas price boards saying 30 cents. Nowadays, it is always either 1.10 or more. I agree with Don Barnett with regards to the reason of why the gas price is rising so fast. I think it is also because of the speed in which people consumes it. Moreover, gas is a nonrenewable resource, the supply is limited. Thus the prise is raising that fast. I think if people wants to save up money, maybe it is a good idea to switch to something else like electricity. That way, people can have an alternative to help save up money.