A major hurricane shut down many coastal oil refineries, decreasing the supply of gasoline. Given the laws of supply and demand, how would you expect the price of gasoline to change?

The price will not change.

The price will go down because the supply has increased.

The price will go up because of the reduced supply.

The price will go down because there will be less demand for it.

Question

A major hurricane shut down many coastal oil refineries, decreasing the supply of gasoline. Given the laws of supply and demand, how would you expect the price of gasoline to change?

The price will not change.

The price will go down because the supply has increased.

The price will go up because of the reduced supply.

The price will go down because there will be less demand for it.

wwhitlock · Answer

reduced supply means prices go up.