Money And Investing  -

Offer and Demand Law Examples

21 04 06 22 22

-------- It is a universal law

Yesterday I had the opportunity to find two examples of the law of Offer and Demand.

Census: Americans leave big cities - USA TODAY

During years 2000 to 2004 Boston lost 41,851 residents, New York lost 211,014.

Apparently the price of Real Estate and the lack of space in cities motivate people to move into equally provided residential areas. With equally provided I means that they have access to similar products and services – at least the ones of value for the average family.

Drivers curb use as gas goes up - USA TODAY
"Gas use last month was 0.6% less than a year ago, the American Petroleum Institute reported, because "high fuel prices have led to decreased demand for gasoline and other refined oil products."

Rise in gasoline prices has an effect to the economy: inflation. That is, unless the consumers decide to consume less and then the law of Offer and Demand works towards them instead of against them. Apparently there is less consumption today than a year ago. If we continue this trend we may cause an impact on oil and gas prices.

However, I am not very hopeful. Americans like our freedom to roam the big nation and the big world, and that usually requires Gas. Unless we learn new ways of enjoying our freedom without using too much gas, we will continue to see the prices going up – the price of the freedom to roam.

And In Other News
The Law of Offer and Demand is causing my salary to go up. Still don’t know how much up, but around 15%. See, there is a scarcity for people who can do technical work and customer facing work equally successfully. And salaries for those people are starting to climb like it is 1999.