Question

Scenario 2:

The price of gas rises by $1 per gallon the last month. As you travel through southern california you notice an increase in oil drilling operations. In previous trips you noticed a handful of operations, this trip you're seeing hundreds and hundreds of oil manufacturing centers.

Does this scenario relate to the law of supply, demand, or neither? Justify why you believe this to be true.​

Answer 1

both

Step-by-step explanation:

there is not enough supply to fit the demand meaning said oil is more valuable so it is a good time to drill for more because it is more expensive and you know you can charge more because people will have no choice but to purchase it at your price until supply exceeds demand which will make it less valuable until the demand once again is higher than supply which will make it more valuable again.