Question
During this month the energy industry analysts note that crude oil prices rose sharply and have surpassed the psychological barrier of $100 per barrel. According
During this month the energy industry analysts note that crude oil prices rose sharply and have surpassed the psychological barrier of $100 per barrel. According to their estimates, such a drastic price move will inevitably result in significantly higher gas prices in very near future. If the general public views these estimates as accurate and credible, i.e. if people do begin to believe that the gas prices will soon be much higher for above reasons, then what is likely to happen to demand for gasoline as soon as the analysts' assessments become public?
What is the determinant?
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