Reports by Consumers

Hurricane Katrina is bring the U.S. an unwelcome lesson in the impact of decreased supply. This consumer reports:

The Law of Supply and Demand simply states that when Supply is higher than Demand that prices fall. When Demand is higher than Supply, the price increases. Gas prices are a perfect example of this. There is far more demand currently for gas than the supposed supply, therefore prices go up. If millions of folks began driving cars that ran on an alternative source of energy and the demand for gasoline dropped, the price would fall as well.

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