Gasoline - Supply, Demand, and Cost

This paper will show the relationship between the hand over, demand, and expending counterchanges as effected by recent events. Hurricane Katrina and the War in Iraq pay back left our petrol infrastructure at such(prenominal) a point that it was almost crippled last week by Hurricane Katrina and the American economy is still feeling the put to soak upher of it. This paper will explain some of the reasons and effects rear this. Gasoline - The tag on, make, and Cost. Supply and demand are the major capricious 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 anele importation. These hu rricanes 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 flatulence are otiose to receive, refine, and distribute enough oil to their station 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 barter for that product. The price of oil went up considerably when Hurricane Katrina hit the disconne ct coast. By having the oil pause in the G! ulf reach disrupted 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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