Buy custom Arizona Crisis: Movement of Supply and Demand
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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 732 |
Essay's paper body
suppliers were being diverted to Phoenix to replace the Texas supply (Garay, 2003).
This event that occurred with the gas pipeline in 2003 created a movement within the supply and demand curves. Firstly, the supply of gasoline was seriously reduced causing a shift in the supply curve. This shift in supply moved to the left creating an increase in the equilibrium price...
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The consumers expectations of a price change in the future increases the current demand as the consumers increase the quantity they purchase in anticipation of the increased price changes. This causes the quantity demanded to increase and the demand curve will be shifting to the right.
To conclude, a major gas pipeline supplying gasoline from Texas to the Phoenix area burst...
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