How Do Gasoline Prices Affect Supply And Demand?

Supply and demand of a typical good or service can be affected or shifted by all sorts of scenarios. The shifting of the demand curve are affected by certain situations such as changes in prices of related goods and services, income, number of buyers, changes in tastes, and changes in expectations (Sexton, 2012). Any of these changes are sort of like a domino effect, if one product is needed then another product related to it will either increase or decrease in price. This is all subject to change based on price and need of the product. The increase in demand for one product may lead to the demand of another that is needed for that initial demand. This reaction causes a curve shift to the right as it continues to increase, causing those two

Gasoline is a necessity for all individuals who drive a vehicle. Gasoline prices have increased drastically and are always fluctuating up and down depending on the price for oil at that given time. Consumers tend to respond to these prices, when the price is increased drastically, some of those consumers will try and wait until the prices decrease (Bryne, Leslei, & Ware, 2015). When those prices finally do decease, some consumers may even stock up on a larger quantity for their household. In this particular situation when the gasoline price decrease, gas stations will be able to have more in supply for consumers. This would be considered a curve shift to the right. The lower price in gasoline is considered the shifter that was affected. When the gasoline prices decrease, there is a great demand from consumers which essentially brings the equilibrium price and equilibrium quantity to intersect. When consumers are willing to buy that gasoline at that given price by the supplier, this would be considered the equilibrium price as well as the equilibrium quantity of the