... (Anadarko Petroleum Corporation) in Gulf of Mexico due to the storm of Hurricane Rita (www.oilonline.com, 2005) has significant impact on reducing world's supply of oil where the reduction in supply ultimately increases the price of oil even when the demand for oil remains unchanged. Economists usually observe this effect as the law of demand (Begg etl 2003:P27). Undoubtedly, since oil is the main source of energy supply of running motoring in the world, the impact on buyer demand for car, bus and train travel due to further raise in the costs of motoring would be greatly affected. Normally, as observed by most Economists, the impact would be of a reduction in consumer demand for motoring (Lipsey & Chrystal 2004:P44). Hence, this essay aims to deliver the answers to why the reductions in buyer demand for motoring by briefly illustrating few important economic theories such as demand analysis, price elasticity and ...

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