Lisa asks…Why did the price of gas rise in 2007/2008?Ok so I am trying to figure out economically why the price rose. We know gas is a limited resource, but what changed in terms of supply and demand. Ok obviously the supply has been decreasing, so demand would sky rocket and prices would rise but then that doesn't explain why they fell in late 2008.
I understand the recession came income decreased and alternatives were found (public transportation, car pooling) so the demand curve shifted
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