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Unformatted text preview: The law of demand states that more of a good will be demanded the lower its price, other things constant. Thus, there is an inverse relationship between the price of gas and the quantity demanded of gas. At the same time this is also a case of supply, which usually end up hand-in-hand in the economic world. The law of supply states that more of a good will be supplied the higher its price, other things constant. Thus, there is a direct relationship between the price of gas and the quantity of gas supplied. Overall, we as American drivers have to come to the realization that gas prices aren’t and weren’t going the stay as low as they’ve been. The more we buy gas the higher the price goes, and with the summer months upon us, prices and demand are sure to soar. Derrick Palecek Article #2...
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This note was uploaded on 02/25/2009 for the course ECON 002 taught by Professor Mcleod,markpehlivan,ayseozg during the Spring '08 term at Penn State.
- Spring '08