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Engineer Gets 110 MPG Out Of '87 Mustang Ohio Man Competing For $10M Prize POSTED: 10:21 am EDT July 2, 2008 UPDATED: 11:07 am EDT July 2, 2008 Doug Pelmear said he isn't toying with the engine of 1987 Ford Mustang for the money. The engineer's tinkering, however, could earn him $10 million and save him plenty more in gas money. Pelmear, who lives in Napoleon, Ohio, has tweaked his Mustang to get 110 mpg, making the engine nearly five times as efficient as a traditional gas engine, he told the Toledo Blade newspaper. "We redesigned a lot of different...

Here's what one reader wrote: "Williams, I can understand how the destruction of Hurricane Katrina and Middle East political uncertainty can jack up gasoline prices. But it's price-gouging for the oil companies to raise the price of all the gasoline already bought and stored before the crisis." Several other readers made similar allegations. Such allegations reflect a misunderstanding of how prices are determined. Let's start off with an example. Say you owned a small 10-pound inventory of coffee that you purchased for $3 a pound. Each week you'd sell me a pound for $3.25. Suppose a freeze in Brazil destroyed...