Article Review

ECO365

Article Review
During this economic crisis, everything from food, clothing, and fuel has gone up. The most puzzling thing about the economy is the price increases. With job unemployment being at such a high rate, one would not expect the prices of consumer products to be so high. One would certainly think that there would be some relief at the gas pumps. Gasoline prices have soared to an all time and record breaking high this year. People have gone to alternative forms of transportations. Many people are hoping for some kind of break in the prices of gasoline. Memphis may be the only city getting some sort of relief at the pumps.
Since gas price have almost double since the last year, many people have found new ways to offset the cost of the high prices. Considering new cars with better miles per gallon (MPG) has been an outlet for people. Riding motorcycles of scooters also save on gasoline use. Some people have even resorted to car pooling and ride bicycles. No one can truly say what is best for people, but there are some alternatives out there.
Demand
One was asked to describe what has occurred to change the demand for the product or service and its market and equilibrium prices. Assuming that the demand remains the same for the product much has changed. The product of gasoline has remained the same far as people having the need for it. People still drive their vehicles everywhere they go. This has not changed the demand for gasoline. The market for gasoline has also gone up. Wherever gasoline is sold cheapest people will flock to buy. The equilibrium of the prices for gasoline is not there. Gasoline prices vary from neighborhood to neighborhood. Some prices are lower and some are higher.
Supply
One was asked to describe what has occurred to change the supply of the gasoline and the equilibrium prices.