Gas Prices Sky Rocket
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There are few commodities which are as essential as gasoline. This is used by the individual to power their car to get to work, take children to school and travel to and from work. Those who do not have cars of their own may use public transport or friend cars which will still used the commodity. The effect of gasoline prices on the economy does not stop here, as in addition to transporting people it also transports products, from the pizza delivery man to the large big rig which supplies the local Wal-Mart. This means that all the good purchased will have an element of their price reflecting the transportation costs. In other countries where gasoline prices are higher, such as the United Kingdom, this influence can be seen to have a direct effect on retail process and the economic measures of the retail prices indices. The price of any good usually depends on supply and demand. Where demand is greater than supply the price will raise as there is not enough of the goods to satisfy the market. This means that as the price raises the demand will gradually fall until the amount supplied will meet the new level of demand. This is known as the equilibrium...