Demand refers to the quantity of products people are willing and able to purchase at various prices during rough specific time period, all other relevant factors cosmos held constant. The law of demand states that all else being equal , as price falls, the quantity demanded rises, and vice versa. Supply is the quantity of a product that producers are willing and able to put on the market at various prices, all other factors being held constant. The law of supply states that all else being equal, as price rises, the quantity supplied rises and vice versa. So, how does supply and demand result to the fluctuation of gasoline prices?
Currently, there is an increase in demand of utter(a) oil in China and India and other developing countries delinquent to their increase in population, increased trade, growing international markets and beefed-up commodity prices. In addition to this, the U.S. and European crude oil demand is also high due to the winter season. From the U.S. zippo Information regime website, the domestic crude oil production has declined in 2011. According to the law of demand and supply, we can deduce that the increase in demand of oil and the decrease in supply have caused an upward pressure in the price of gasoline to gravitate the market towards and equilibrium. The U.S. Energy Information Administration projected that regular grade gasoline retail price will rise from an average of $2.78 per congius in 2010 to $3.17 per gallon in 2011 and $3.29 per gallon in 2012.If you want to get a full essay, order it on our website: Ordercustompaper.com
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