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.

anonymous · Answer

@hippo4

anonymous · Answer

hmm

anonymous · Answer

Okay, this principle is at work every day here in the United States.


Replace coastal refineries with Middle East, and you should have your answer.

anonymous · Answer

When the supply of gas goes down, demand always jumps. Therefore the price will jump up higher. That is how we get these $3.65, and $3.75 gas prices.

anonymous · Answer

thankz

anonymous · Answer

When the supply of gas goes down, demand always jumps. Therefore the price will jump up higher. That is how we get these $3.65, and $3.75 gas prices.

anonymous · Answer

Thank you Jade for copying and pasting my answer. Please come up with your own original responses.