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Glossary
Economics Applied

The general manager of WDIV-TV in Detroit editorialized on air this week about rising gasoline prices. He was particularly annoyed that gas prices seem to rise around holiday weekends. I would be very unhappy if they didn't rise then. Demand is high on those weekends, and the storage capacity of gasoline stations is limited. If prices didn't rise, the amount demanded would be even higher, and we would observe temporary shortages of gasoline and a lot of unhappy drivers. The high price around holidays is what keeps supply and demand in balance.

—Daniel Hamermesh
Economics Is Everywhere