Assignment task:
Gasoline is a necessity and is an excellent example of supply and demand. Gasoline is an essential product that allows people to run their cars. Gasoline will enable people to get from point A to point B. ExxonMobil is one of the largest companies in the United States that produces gas. "ExxonMobil manages an industry-leading portfolio of resources and is one of the largest integrated fuels, lubricants, and chemical companies in the world" (ExxonMobil). People buy gasoline to fuel the engines in cars, aircraft, lawnmowers, heavy machinery used in construction, generators, etc... Gasoline demonstrates law and demand because when more is available and being used less it is cheaper especially in the wintertime because people are traveling less. In the summertime, the price of gasoline goes up because people are traveling more frequently and less is available. "It is expected that the quantity of gasoline purchased is affected by the price of gasoline and by the economic conditions at that time. Therefore, as the price of gasoline rises the demand should fall" (Eliana Eitches and Vera Crain, 2016). I think supply and demand are affected by the economic environment and the same goes for gasoline. "Today, most U.S. refineries are running at or near full capacity, processing all the oil they can possibly handle. However, refining capacity has contracted in recent years due to the pandemic, government policies, or other economic pressures"(ExxonMobil). The supply and demand for gasoline is extremely high due to the amount being used all around the United States.