This paper will show the relationship in the midst of the depict, demand, and price changes as affected by a new-made event, Hurricane Katrina. She left our splasholine infrastructure at such a point that it was almost crippled and the American economy is nonoperational feeling the effects of it.
In any market situation, supply and demand mental unsoundnesss can affect prices in the short term. Supply shortages typically cause upward price pressure, and can gist from an unplanned refinery outages, pipeline problems, or an unforeseen increase in demand. Refineries, rigs and processing plants were damaged and shut down for repairs, reducing supplies from the bidding coast, after Katrina. Gas prices jumped 46 cents, which causes motorists to go into shock. They started driving less, which could impart lead to prices dropping back down.
Recently gas consumers search to think that the upswing in gas prices, argon the result of the gas stations, also know as price gouging but they are not. The increase in price per gallon at the pumps is from the im equilibrium between the supply and demand equation. When the supply and demand balance becomes established again the prices should fall back down.
In summary, gaseous state movements, whether up down, do result in what the consumer does, how much of a demand they have, but also natural incidents can play a part in supply and demand. If there is an decorous supply or if we have another natural disaster that affects the supply of these resources and there is an excessive demand such as the one caused by Hurricane Katrina, then the prices of gasoline will rise. hopefully it will not be long before the refineries and ports in the Gulf of Mexico are restored to their full production, but is there a lesson that can be learned from this in that we whitethorn see too much on oil or that it may be time to find alternatives to this resource.
References
Lehman, T. Gas Prices Fact or Fiction: A Primer on Supply and Demand....If you wish to get a full essay, order it on our website: Ordercustompaper.com
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