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do you think raising gasoline prices increases supply and decreases demand?


No, at least not in the US. Localities are set up with the need to drive from one place to the next, and public transportation does not exist on a large enough level to be effective outside of large cities. Hence, in order to get to work or do nearly anything, one must drive from point A to point B. Thus we need gasoline, and as price increases, we must shell out more money for a much needed comodity.

The only counter to the above, is that as gasoline prices increase, so does the demand for hybrid vehicles.


I agree and as gas prices rise so does every thing else.


You are correct, as many of the items we buy have transportation costs attached to them.


Shadar , great answer. I agree with you 100%

Globally Interested:

No. Price is determined by supply and demand. Not the other way around.


yes...but in my house it decreases supply and demand!! hey hobe!! how is the garden coming along?


good morning yep it decreases supply and demand here also. the garden is slowly coming along .i set some tomato plants planted squash and cumber seeds yeasterday.
thank you and have a great day.


no. it would decrease supply but increase demand. Gasoline is price inelastic since people will require it no matter what unless any major development in alternative sources has been done.


i agree.

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