Generally we are affected by changes in our environment in many different ways. People reactions to those almost any change will vary. With the increased technology we have become accustom to products which provide us with convince, and often feel they are necessary for us to maintain existence. Sudden changes in supply and demand and pricing could lead us to analyze our need for a particular product or service, and consider using alternative methods. The alarming increase in gas prices at the pump is a challenge that is prevalent in most households today.
There is a definite need or demand for gas; consumers tend to rely heavily on personal and public transportation which create a need for gasoline. This need generate a demand for that particular product. People want a lot of things; they demand less than they want, because they are not always able to afford what they want, demand means a willingness and ability to pay.
(Colander D.C. (2004). No matter how high the gas prices have go the demand for gasoline the demand fluctuate very little because people adjust their behaviors, but ultimately we still need gasoline.
The demand for gasoline has risen due to the number of SUV's and larger vehicles requiring more gas. Commuters that commute a long distance to work also contribute to the demand for gasoline. Personal travel that has increased due to reasonably price tickets offer by the airlines. Higher price at the pump generally decrease the demand for a particular product. When the price rises and the demand decrease, usually the supply then increases. These are all factor that cant constitute a change in both supply and demand.
Recently you can notice a record number of raise in the gas prices nationally, while crude oil prices are and strong petroleum demand.