Gasoline Impact During the recent economic crisis everything costs for food, housing, clothing and fuel has gone up. The high price increase for products has hurt the economy tremendously. The high rate of unemployment has contributed to the actual economy crisis. One would certainly think that there would be some relief at the gas pump. Gasoline prices are at breaking record levels. Many residents have a hard time affording the cost for fuel. Today people are finding themselves choosing different ways of transportation. Many people are hoping to see gasoline prices drop significantly which would provide a much needed relief to their budgets. The demand for gasoline has remained the same, as people continue to have a need for it. People need to drive their automobiles everywhere they go. This has not changed the demand for gasoline. The market for gasoline has also gone up. Wherever gasoline is cheaper, people will flock to buy it. The equilibrium for gas prices is not balanced. The price for gasoline varies from neighborhood to neighborhood, city to city etc. Some prices being lower, and some being higher, but overall still remains higher than previous years.
The supply of gasoline in the United States is available, but the government chooses to purchase fuel from other countries. This in turn leads to higher gasoline prices. The United States decided that they would not drill off shore because of the last big oil spill. The oil spill cost the United States more problems for the economy. People who live and depend on support from the sea suffered because of the oil spill. There really is no equilibrium price for this, because people are making less money and oil prices are steadily rising.
The quantity demand for gasoline almost never changes. The longer the current market is acquiring expensive petrol, the more consumers are willing to alter their