Arizona’s Gas Pipeline— it’s effects on the Economy Having severe damage to the gas pipeline that supply Arizona with gas, caused the pipeline to shut down over a couple of weeks, thus creating a sellers market and consequently gas prices sky rocketed. Since there was very little gas to go around for consumers to fill up their tanks, gas stations weren’t profiting as much by hiking up the prices— as the quantity was far less, even though the consumers ended up paying for outrageous prices at the pump. As per the old rule of supply-and-demand when a product is scarce and there is a lot of demand, sellers have the luxury of increasing the purchase price onto the buyers, leading to a change in the equilibrium price, and the quantity in which drivers will fill their tanks. Because the gas was hard to come by, it made drivers think twice how far they will drive. When the gas companies stop the normal deliveries of gas to the gas stations, gas stations started to run low on fuel, again gas prices went up, and this worry many head of households who now had to take into consideration whether that family vacation will be taken by car or by plane. Although there was a higher demand for gas the amount people were willing to pay to get their vehicles filled up never change, primarily because people still needed gas. The temporary blockade of gas did however, shifted the supply curved to the left, and leaves the demand curve about the same. The equilibrium price of gas does change as it’s expected, just as it did when Katrina damage some oil refineries in New Orleans, causing the gas prices to escalated over the past summer. Since there was damage done to the gas pipelines the equilibrium quantity went from normal reserves to emergency reserves, which as discussed earlier created a chain-reaction in the gas price industry. The chain-effect on the economy a gas pump