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Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, societal customs, and political realities of the society (Colander, 2004, p. 3-4). There ar two problems that await any economy on a given total this is how much should be produce and who it should be produced for. This paper give summarize an article from Chevron, and the supply and demand on muck up and why prices outgrowth.

Throughout the years, the cost of gasoline has fluctuated greatly. Consumers have watched in idolatry as prices have plummeted down to less than a buck a gallon and up to more than three dollars a gallon. In the wake of Hurricanes Katrina and Rita, the U.S has seen gas prices skyrocket. The greatest single gene that may contribute to the rise and fall of gas prices are fluctuating demands and competition within the cover industry.

Several factors will govern what causes the rise of gas prices. These can include natural disasters, or other factors. As stated by Chevron:

Crude fossil oil prices have risen dramatically over the last year, determined by strong global demand, limited spare oil production capacity, continuing political instability in veritable oil producing regions, and most recently reduced supply from the violation of hurricanes in the Gulf of Mexico (2005, p. 1).

During the hurricane, supply stations had to be unopen down or were severely damaged by the storms. This caused a supply and demand problem within the United States. Individuals and families were evacuating the range and were in need of gas to get out of the touch on areas. Due to the shut downs individuals across the country were panicking that there would not be enough gas and were heading to the pumps in droves. This caused an increase in demand when there...

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