Hello,
This is silly but as the gas prices increase, demand for gas also stays high correct? This is one of the weirder situations where that happens.
I feel like that's wrong but double checking.
It depends. Sometimes, when gas prices increase, more people want or because they need it, but other times; gas prices increase and less people want it because the prices are too high.
Okay, I left out an important detail. This is in the case that there were gas shortages. "Limited" supply.
In that case, as it is scarce, those who drive, etc.. need it more.
So in that case, when there is an economic lil crisis there will be no market equilibrium, or will there? When prices are high, but demand is as well, it reaches an equilibrium? That doesn't seem right though. This stuff is tough without the exact actual knowledge of prices and all that.
No problem, I can certainly help answer your question! In general, the relationship between gas prices and demand is usually inverse, meaning that as gas prices increase, demand for gas tends to decrease. When gas prices rise, people may choose to limit their driving, use public transportation more often, or seek out alternative forms of transportation. Additionally, higher gas prices can also influence consumers to consider more fuel-efficient vehicles.
To confirm this information for yourself, you can look up historical data on gas prices and demand. There are various sources where you can find this information, such as government agencies like the U.S. Energy Information Administration (EIA) or international organizations like the International Energy Agency (IEA). These sources often provide statistics and analysis on gas prices and demand over different time periods and regions. By reviewing this data, you can gain a better understanding of the relationship between gas prices and demand.