Demand, Supply, and Price of Gas

Emily, Jess, Loren, Shannon, and Logan

Factors affecting demand

The price of gasoline affects the demand because if the price is lower then the demand will be higher because more people will be buying the product. Competition also affects demand because if there is a gas station that has a cheaper price, the consumers would most likely choose to buy from this gas station rather than the more expensive one.

Factors affecting supply

The demand of how much gasoline people are willing to buy may be higher than the amount available. Depending on how much gas is being collected the price of it will go up or down,. For example in 2011-2012 there was a very limited amount of gas being found especially in the United States so we had to import more than normal and since certain countries knew we needed it they raised their prices because gas is a necessity and we cant go without it.
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As the supply goes down the price will go up. This is why in summer the prices are lower since there more availability of the product.

Demand and Supply Curves

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