Gasoline - Supply, Demand, and Cost

This paper will show the relationship between the supply, demand, and spending counterchanges as effected by recent events. Hurricane Katrina and the War in Iraq grow left our petrol infrastructure at such a point that it was almost crippled last hebdomad by Hurricane Katrina and the American economy is still feeling the piece of it. This paper will explain some of the reasons and effects piece of tail this. Gasoline - The hand over, pee-pee hold of, and Cost. Supply and demand are the major whimsical pull out behind capitalism and the economy (Hagenbough, 2005). Supply and demand allows consumers and producers to change the market condition quickly, but what happens when M another(prenominal) Nature makes the changes for us? Last week Hurricane Katrina did just that; Hurricane Katrina dramatically impacted the disjunction of Mexico where several refineries were disrupted and several ports were unopen that were restricted on oil importation. These hurricane s as salutary as several other storms this year have disrupted the supply of oil to the united States on several occasions (Webb, 2005). If the oil companies that are dependant on this oil to make gasolene are otiose to receive, refine, and distribute enough oil to their place nationwide, the price of the gasoline must increase. This is what is referred to as supply and demand.

Demand in turn is influenced by the price of goods. If the price of a product is high it is slight likely for a consumer to leverage that product. The price of oil went up considerably when Hurricane Katrina hit the disconnect coast. By having the oil pause in the Gulf part dis! rupted as well as the oil in the Iraq market, and with the demand for this oil not decreasing, the customers will ultimately have to pay the difference at the pumps (Strauss, 2005). This in turn... If you want to get a full essay, nightspot it on our website: BestEssayCheap.com

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