An economy is the management of the production and distribution of resources including labor, capital and land resources in a particular area of the world. What is this "production and distribution" that keeps our economy growing and running; nonetheless, the strength of the economy? The two terms being searched for are 'supply' and 'demand'. Though supply and demand are two different words with two completely different meanings, they both go hand-in-hand. Supply is simply how much of something one has or how much of something is readily available; demand is how much the people want of something. After much extensive studying and research, it has been concluded that supply and demand is the most basic concept of the economy and throughout time its definition has remained the same, but the people of each generation come up with ways to show the extent of its meaning.
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Do any middle or lower class citizens living in the United States of America have any discretionary income to spend anymore? According to the U.S. Department of Commerce, the answer to this question can simply be answered by saying not nearly enough disposable income as in previous years. The reason for Americans not having as much discretionary income to spend how they choose is because their money is being spent mainly on items necessary for survival and everyday living: groceries, bills and gasoline. With the price of gasoline and crude oil rising due to controversies overseas, many people are finding it difficult to pay for such extreme gas prices that only keep inflating. The current national average of regular-grade gasoline prices is $3.74, with predictions of seeing $5 by the month of May. The world produces close to 85 million barrels of oil, but only uses 83 million of that amount each day "this is how supply and demand keeps one another in check [balanced]. If this balance becomes unsteady, gas prices increase.