Supply and Demand-BP Edition

A new story on CNNMoney.com claims that BP stations may soon offer cheaper gas. Basic supply and demand from any ECON 101 class can help us understand why. Some people are boycotting BP gas stations, even though that measure is misguided since the actual gas station owners will be the ones taking the biggest hit from any such campaign. Regardless, sentiments such as a boycott will lower demand. Lower demand leads to lower prices if you hold everything else equal. It is easy to find everyday examples of economic principles.