Supply & Demand-Are you capable of understanding?

Orlando FL

Description

Take the case of high gas prices. From Reuters: “Millions of Americans will drive their cars to visit family and friends over the Thanksgiving holiday even though gasoline is above $3.00 per gallon, travel and leisure group AAA said Thursday. About 38.7 million Americans, 1.5 percent more than last year, will travel 50 miles or more from home this holiday, AAA estimated, based on a national Web survey of 2,200 adults. The price per mile of travel is increasing (gas prices are increasing) and miles traveled are increasing relative to last year. The only thing consistent with higher prices and higher quantity is an increase in demand. If high gas prices were supply driven we would see consumption decreasing, not increasing. And all you have to believe is people buy less at higher prices and that seller want to sell more at higher prices. That's all.” Supply and demand determine prices of commodities, not politicians.