Business: Current Event

Today in class, we discussed needs and wants, goods and services, and how they relate to economic resources. Resources are the things available to be used to produce goods + services. However, resources are limited. Limited resources are resources being used for one product that results in a limited supply of another. According to an article on CNN, titled America's gas glut could send prices even lower, the price of gas in the U.S. is the lowest since 2004. This is due to an oversupply or excessive amount of gas. This is a clear example of limited resources, because while there is a large amount of gas, storage space is lacking. Rather than keeping the gas and increasing prices, the U.S has decided to decrease the price of gas in an attempt to get people to buy it, as they have less space to store all of the goods. This shows how while the production of gas increases, the amount of storage space decreases.