Web Activity 1

How does the average retail price of electricity in your state compare to that of neighboring states? What are some possible explanations for this difference? How does the price of electricity in your state compare to the national average? What are some possible explanations for the difference?

To find information to answer this question, log on to www.energy.gov, then scroll down to the "How Much Do You Spend?" map.

Web Activity 2

Go to an auction site such as eBay at http://www.ebay.com. Pick a product that is up for auction and is due to close within the next few hours. Track its bid history price over the period. How does the price change as the time draws nearer to closing time? Draw a supply and demand diagram of the auction.

Web Activity 3

The New York Mercantile Exchange is a market in which buyers and sellers set prices for the promise to deliver various future commodities. We expect bid prices to rise sharply as the auction nears the expiration time.

Go to http://data.tradingcharts.com/futures/quotes/JM.html to find a chart for electricity futures. Look at the "Set" column. Record these numbers and explain why there is a spike in the futures price of electricity during the months of July and August.