Wednesday, July 23, 2008

Demand curves still slope downward

A headline from the Boston Metro "U.S. gas demand falls, prices blamed". According to a report issued by MasterCard, U.S. gasoline demand fell 3.3 percent.

I'm glad to know that my Econ 101 class was right and that demand curves slope downward. Prices continue to act as a signal for people to their alter behavior, in this case by buying less gasoline.

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