Sunday, December 16, 2007
Response to: Why has oil price surged recently?
Recently gas prices has soared just like it has many times in the oast couple years. It is the holiday seasons and when there is a time of year when there is high demand going on in the economy then gas prices also increase. When demand and quantity increase, then prices increase too causing gas prices and prices for other items to increase along with demand. If prices increase too much then inflation will occur but as far as gas prices are concerned, as long as demand increases, then the price on gasoline will be high. The time when prices for gas are low is during the spring leading into the summer when it is not a high shopping season and people are going on a lot of vacations. But as the seasons turn and Christmas approaches, then prices start to increase again and then they get to an all time high.
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1 comment:
Drew: for this post I think you sort of understand what is going on. But you are confused between demand and quantity demanded. The following are my comments for improvement
1)Too many typos or grammatical errors. For instance:"oast couple years""It is the holiday seasons"
2)"When demand and quantity increase",what do you mean? Should it be "the demand increases". Please be careful, demand and quantity demanded are the right terms in economics and there is a big difference between them.
3)"The time when prices for gas are low is during the spring leading into the summer when it is not a high shopping season and people are going on a lot of vacations." If people are going on vacation, the demand for gas is also high. And I remembered people were complaining about soaring gas prices then.
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