Critique on Gas and supply and demand

I am critiquing the article that Melissa did on “The Supply & Demand of Gas”. I think that she chose a very interesting and relevant article. Everyone in our class, assuming they have a car or at least their license, is affected by the price of gas. This article makes one realize how would wide events and disasters control things in our every day life’s including the price we pay for gas and oil. Melissa makes valid points throughout her blog. I think her statements about the supply and demand issues with gas are dead on. It has become apparent that U.S. citizens are most likely going to purchase gas at any price, due to the simple fact: that they need it. Since the demand is rising, it is changing the supply and demand chart and where the equilibrium meets. It is true, due to the fact gas is a natural resource, the supply is not going to change therefore it will remain the same. The same facts go for oil. Due to natural disasters, such as those in Japan that Melissa had stated, the need of oil is increasing, however it is not that easy to come up with as much as needed.

I found it very interesting how she related the increase of price to the increase of consumption of gas as irregular. It is true that is does not follow the rules concerning price elasticity. She mentioned how usually when price goes up demand decreases; I found it very useful for her making this comment. I however cannot agree with her blaming it on Asia. I feel that all of the countries affect this problem since everyone has strong needs of this substance. I did not understand her comment on the fact of rising prices in gas was in hopes to decrease the demands of oil. I feel that she may have meant to state the opposite.

The use of the supply and demand curve with gas was very relevant with our class. I believe that Melissa made it clear that no matter the price of gas, there will always be consumers and it will always have high demand. However I believe she could have made her points on oil a littler more clear and included more on what the political risk may be for the United States and other countries. I think the article left on a very influential note that gas prices are going to lower throughout the second half of the year and maybe Melissa should have included that. I feel that its important to know that, I would like to know that gas is going to decrease in price soon.