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At the pump, supply & demand

October 20, 2008 By WRN Contributor

Economics 101, at the gas pump. The old law of supply and demand appears to be the major factor behind falling gas prices. Larry Kamholz is with AAA-Wisconsin. "We have seen a significant drop in demand," says Kamholz. "People are being a little bet more conservative with their habits." Combine that with adequate supplies of gasoline, and we're seeing per gallon gas prices a dollar below what they were a month ago, and about the same as a year ago. Will the downward trend continue? Kamholz says that's anybody's guess: "there could be a significant event that happens . . . that could change everything instantaneously." As of today/Monday, the statewide average for a gallon of regular is $2.88.

AUDIO: Bob Hague reports

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