WEEK 9 Recognizing Significance

Gas under $3 - coming to a station near you

The news story I find is about the decline of gas price.  According to the AAA, the average price of a gallon of regular gas is about $3.19 (Isidore). The six states, Missouri, Oklahoma, Arkansas, Texas, Kansas and Louisiana, has taken the average price below $3 like the price on the picture above show $2.97. Also, 20% of gas stations are already charging less than $3 a gallon for regular gas. 

According to the decline of gas price, the economists can predict the market of car and automobile insurance. As the price of gas price decrease, people would buy more cars and also the more automobile insurance. The study of economics is such important to the markets not only for the gas market, but the other correlative markets. The change of supply-demand relationship influences the fluctuating range of gas price. And the volatility of price will also influence the economic market. Like I talked the relationship between supply and demand in the previous blog. As the price of oil decrease, people will encourage buy cars. It is as well influence peripheral industries of auto. Like domino effect, economic market will be influenced by individual  industry. 

Work Cited:

Isidore, Chris. "Gas Under $3- coming to a station near you". CNN Money. 2013. Web. Nov. 11. 2013