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eco-journal4 - prices This reflects the Law of Demand which...

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Duc Hoang – Principles of Economics Journal  According to the New York Times, “After more than six months in triple-digit territory, oil  prices dropped sharply on Monday, falling under the symbolic $100-a-barrel threshold  as Wall Street’s woes raised concerns about a slowing economy and slackening oil  demand.”   (JAD   MOUAWAD).   That   the   oil   prices   k eep   dropping   has   remarkably  influenced the U.S. transportation in recent weeks. Last month, when the oil price  sharply rose to over $4 per gallon, many consumers in developed country had to cut  back on their gas use. Their gas demand considerably decreased due to the high gas 
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Unformatted text preview: prices. This reflects the Law of Demand, which indicates that the demand will increase if the product price decreases and vice versa. However, in developing countries, such as Vietnam, Laos, where public transports still need improving in both quality and quantity, the consumers’ demand of gas use still remained strong as they have no other choice for transportation. Therefore, the number of buyers kept increasing, thus the demand remained no change. When gas price increased, many other goods’ prices such as food also relatively rose...
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