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Does the US gas price follow suppl? Demand and US scarcity,

#1

If the price of a product or service goes down, the demand will go up. Or, if the price goes up, the demand will go down.

How does the law of demand relate to the price and demand for gasoline in the United States? Does this law accurately reflect reality? Use current research, personal experiences, and economic concepts to state your response.

#2

The United States is one of the wealthiest nations on earth, yet our fundamental economic problem is scarcity. How can this be?

Solution Preview

#1

If the price of a product or service goes down, the demand will go up. Or, if the price goes up, the demand will go down.

How does the law of demand relate to the price and demand for gasoline in the United States? Does this law accurately reflect reality? Use current research, personal experiences, and economic concepts to state your response.

At the current levels of consumption, the demand is high for oil and oil products. The increased amount of consumption is not confined to the United States, but reflects a problems long part of world and its need for power.
The law of supply and demand says as supplies rise, prices drop, but demand reverses this and demand can cause prices to rise. Current pricing of gas in the United States has not created much drop in demand. It has created new markets for such items as hybrid vehicles and more efficient heating ...

Solution Summary

Answers to two questions about the United States economy. First does gasoline prices follow supply and demand rules and the second, what is the underlying problem with scarcity in the wealthiest country in the world.

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