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Supply and demand of gasoline
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The thought of rising gas prices is something a person thinks about when summer arrives and it is time to put gas in their vehicle. More people travel in the summer, especially for family vacations, which increases the demand for gasoline. Also, in the summer there are natural disasters that happen, such as hurricanes that will cause a spike in gas price. Gas prices are determined by many factors, and supply and demand are one of those factors. When it comes to gas, gas is something that people want to purchase, and the sellers want to sell.
Every year in the summer and winter gas supply changes. This is better known as the seasonal gasoline transition, and depending on what time of the year it is, gas stations change on the type of gas that
The assignment this week presents a problem where the American Automobile Association (AA) generates a report on gasoline prices that it distributes to newspapers throughout the state. It further states that on February 18, 1999, the AAA called a random sample of fifty-one stations to determine that day’s price of unleaded gasoline. The following data (in dollars) was given in this report:
I am a husband and a father of four lovely children. We need a large vehicle to haul all of us around town. And of course I would do anything to keep them safe and I always want to provide them with the best. Therefore, after the birth of our fourth child two and a half years ago, my wife and I decided to upgrade our Ford Explorer to a Ford Expedition. We got everything from the side-curtain airbags to the TV and DVD player. What we did not know was we also purchased a rather large unleaded gas bill. The first time we filled the tank it cost us roughly $35; today it costs us right around $75 to fill the tank. Obviously the price of gas has increased significantly in the last two years. The price increase is due to a fluctuation in the supply and demand of not only gasoline but also crude oil, which is needed to manufacture gasoline. In addition, several other factors are influencing a change in the price of gasoline.
The gas prices started dropping so low that people are available to fill up their cars with gas. There is a good side of these gas prices going down but there is also a bad side. We can say that the good side is people are actually excited because they spend less money on gas and have extra money to spend it on other things. The bad side of the gas price is people are losing their jobs and they sometimes they can't afford for their bills or as simple as not being able to eat.
oil and gas are used up each year so that Americans can drive at high speeds across the
Zhou, M. (2008, April 24). MarketWatch. Retrieved May 19, 2011, from Gasoline could hit $7 a gallon in four years: http://www.marketwatch.com/story/gasoline-could-hit-7-oil-could-double-in-four-years-cibc-says
The cost of fuel had risen by 6 cents to 158.1 cents in the week of January 5, which is quite a fast rise in price. It was reported by CommSec to be the fastest increase in fuel price records since 2004. The price of unleaded petrol as set by Singapore is the primary benchmark of petrol pricing in Australia (Bureau of Resource & Energy Economics 2014). The main reason why the price of fuel has risen is due to the fact that the Australia dollar has been depreciating and gasoline prices in Singapore have been rising.
To the public, most individuals are probably aware that the cost of funerals and death-related expenses are rising, but are unsure of why. I believe that funeral costs are rising because they know that if individuals have the money to spend on funerals they will. It is their way of showing their respect for that
Gas prices, whether high or low seem to cause an argument between people. Gas prices are such a conversational issue, because they affect almost everyone in the world. They affect people from any range of saving money because it cost less to fill up your car to hundreds of people losing their jobs. Some people benefit from the low gas prices, while others are hurt by them. It is the same way for high gas prices, this is why there is always such a huge argument between the people about gas prices. Although it would seem that gas prices can cause some controversy between people, there are actually several points of common ground between them.
Gasoline has become a necessity to almost everyone. It only takes stopping at a gas pump to see that the prices are continuing to rise. Across the country drivers are feeling the strain on their wallets every time they have to fill up. Commuting to school or work is becoming more costly, forcing people to change their lives to deal with the rising prices. So what causes the constant rise in gas prices? We can blame supply and demand, the United States dependency on foreign oil and the process need to produce gasoline. What are the effects? High demand but not a lot of supply. This means there not enough refineries producing gasoline. Without gasoline people can’t make it through their daily
Finally, many car companies make more efficient cars and hybrid cars. Companies trying to boost their sales through efficient cars and lower gas cost for the consumer. Because of the higher prices of gas consumers are looking for more efficient cars. Gas prices left big companies like Ford, Toyota, and Dodge slow which it had a direct effect in the economy and the workforce. Many people lost their jobs over the passed six months because of the effect of the slow economy.
Inflation; ‘a situation in which prices rise in order to keep up with increased production costs… result[ing] [in] the purchasing power of money fall[ing]’ (Collin:101) is quickly becoming a problem for the government of the United Kingdom in these post-recession years. The economic recovery, essential to the wellbeing of the British economy, may be in jeopardy as inflation continues to rise, reducing the purchasing power of the public. This, in turn, reduces demand for goods and services, and could potentially plummet the UK back into recession. This essay discusses the causes of inflation, policy options available to the UK government and the Bank of England (the central bank of the UK responsible for monetary policy), and the effects they may potentially have on the UK recovery.
The first effect of a gas shortage would be an increase in the price of fuel in this country. Ever since the year 2001 there has been a trend of gas prices increasing. According to an article written by K. Bonsor and E. Grabianowski titled “How Gas Works”, in May of 2008 the average price of gasoline was over four dollars per gallon and increased almost every month after. A gasoline would raise the price of gas even more than usual. There are two main reasons why a gas shortage would make the price of fuel increase. The first reason is supply and demand. When there is low supply and high demand, the price of fuel will increase. If there is a high supply of fuel and a low demand of fuel the price of fuel would generally decrease. A gas shortage would have an effect on the supply of fuel by lowering the amount available. This would then increase the price of fuel. The othe...
The United States has no formal carbon tax that the federal government imposes on its citizen or on big corporations. The states take it in their hands and tax the efficiency at which a car should run based on its “footprint”. (1) Since 1970 automakers have been able to produce new and much lighter, stronger metals and fuel efficient engines that can run for many years. Does this affect the price of fuel? Yes, it does and for a while it affects the price at the pump for consumers. But in turn, what it does is take scientist back to the drawing board to find better and new ways that fuel should burn, metals should break and strength even alternative composites. Before 1990 lead was used in fuels to lubricate the engine as well as cool it. Fuel is rated by its octane most of us is understood it as Regular, Unleaded and Super Unleaded gas, but octane has a numerical value and in the US, 3 different ratings. Octane Ratings can be referred to as the flashpoint at which a fuel will burn and the efficiency at which it burn cle...
Increase in oil prices increases the cost of supply chain. This causes the inward shift in aggregate supply curve and hence the price level goes up. The fluctuations in oil price leads to speculation in the market. This is also a major reason for short term price rise of the commodities in a country.
For any consumer who owns a vehicle and has to commute daily, the rise and fall of gas prices can be difficult to comprehend. In order to understand the variances for gas and oil prices, one must evaluate the core reasons for the fluctuation. According to recent research, the quick changes in oil and gas prices can be directly associated to several factors, which include supply and demand, market speculation, taxes and the expense of refining crude oil into gasoline (Herbert, 2008). These factors affect the price of oil and gas in independent ways, but also are related. Supply and demand has a direct affect on the price of crude oil and when supply is high, usually the price of oil decreases. When supply is low, the price of oil increases. In terms of demand for example, an oil price increase is seen as reducing aggregate demand because of a reduction in spending on goods and services (Olatubi & No, 2003). In terms of supply, this increase will likely produce even more widespread effects and oil price increases will cause overall production costs to rise, shifting the aggregate supply curve to the left (Olatubi & No, 2003). According to research, growing economies globally have increased the demand for crude oil while the supply has remained fairly constant. According to the Associated Press (2013), the average price for regular unleaded gasoline, which is $3.25 per gallon, is the lowest since December 26, 2012. In September 2013, AAA Mid-Atlantic said that the average price of a gallon of regular gas in the D.C. metro area was $3.55, compared to $3.56 the prior week (AP, 2013). Market speculators play a role because oil is a product to them that can be bought and sold based on instability of prices. Speculators try to forecast world events that could impact supply and demand. They buy contracts for oil to protect themselves from sudden increases in the price of oil and when prices rise, they can then sell their contracts that were purchased at a cheaper price for a significant profit (Herbert, 2008). Taxes also effect the variances in prices around the country. Refining oil to gas and transporting it to the marketplace also has a significant impact on the price of gas. A portion of the cost of gasoline goes to turning crude oil into fuel, moving it to gas stations, and retail markup.