to furnish or provide with what is lacking or requisite
Trying to understand the sharp decrease in gas prices, and predict what will happen in the near future requires a basic understanding of the economic principles of supply & demand. No one needs a chart to recall the dramatic rise in gasoline costs. Traditional supply & demand curves look like this:
As the prices rises, the consumption falls. The normal "price-elasticity" law says that for every one percent increase in price, demand decreases by two percent The gasoline industry, however,doesn't respond in the standard fashion. Petroleum has a "low elasticity"; meaning a huge price increase is needed in order to create a drop in demand. During the summer of 2008, a large increase is exactly what happened in America, and as a result, the demand fell. Part of the reason for the recent decline in fuel cost is a surplus. The global recession also has an impact; America is not the only country feeling an economic pinch.
Gas prices are sure to increase again, hopefully Americans can control their demands and in turn control the supply.
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