ECO 100 -- Week5 Assignment - Gas Prices 1 Why the Rise in...

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Gas Prices 1 Why the Rise in Gas Prices Ashley Dyal ECO 100 Ms. Turner January 31, 2010
Gas Prices 2 Why the Rise in Gas Prices Over the years there have been many things that have risen in price due to the changes of time oil prices nor are gasoline prices exempt from that list. The main question many people face though is that the if the reserve levels are the same as they were approximately 60 years ago, why do prices for oil and gasoline keep going up. The main answer would seem pretty simple, for what it boils down to is the concept of supply and demand mostly. Demand can be easily defined as the amount of a product that consumers will buy at each of a series of possible prices during a given time period (Brue & McConnell, 2010). Supply is the amounts of a product, good, or service the producers are willing to make available for the given time period (Brue & McConnell, 2010). It is pretty well known that supply and demand go hand and hand in almost every aspect of our lives, so it now that the terms of what we are dealing with has been defined we can look at some of the other less obvious reasons for rising prices in fuel and oil.

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