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algol13
3 years ago
15

Help please! When gas prices go up, demand goes down slightly, but supply goes up dramatically. Using all of

Social Studies
1 answer:
horsena [70]3 years ago
4 0

Answer:

Explanation:

macroeconomics

law of supply and demand

decrease in demand causes excess supply to develop at

the initial price

in an extreme example  

a luxury item has a very low demand but very high price

supply would increase because the company wants more profit

not just from the company's competitors entering the market

gas prices are a function of market supply and demand. Increases in natural gas supply generally result in lower natural gas prices, and decreases in supply tend to lead to higher prices. Increases in demand generally lead to higher prices, and decreases in demand tend to lead to lower prices

eia

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