gas is low cuz it wuz high so no one bought as much which made it lower becuz no one needed as much... to encourage others to buy it it's cheap... so if we stay at the same usage of it then does that mean it gets to stay 1.50 ish?... cuz i can live with that
First, type in English, second, that is partially right.
The Laws of Supply vs Demand state that if Demand is low, prices are going to fall till it meets a stable price, if Supply is high, prices are going to fall till it meets a stable price, but if Demand is high and supply is low, prices increase until it can satisfy or reduce demand.
During the summer, Demand was at an all time high, most of which were in the futures market, but as the economy began to slump, future prices fell, but the supply was still high. They have to reduce the prices, to quickly reduce supply, as to later increase prices when deman and supply meet again.
My fear is, and what I've heard several Liberal Commentators say lately is, Reduced Gas Prices is almost like a Pay Raise for all Americans, and in that, Washington should raise Gas Taxes, so people don't get used to buying Gas this cheap. Problem is, once theres a new tax on something, it's very, very hard to get rid of it.
All, in all, the Gas Prices being at an 8 year low, is NOT necessarily a good thing when you look at the Big Picture.
