Article Analysis: Trends in Gasoline Consumption

1. Americans are known for their long-term love affair with their cars. But as gasoline prices soar and concern about the environment mounts, the standard of living by ordinary people on a daily basis also become difficult; the need to conserve gasoline has become increasingly clear. What would it take to reduce the overall demand for gasoline in the United States most especially as we see it now?

There is not a class offered at most high schools that teaches the younger population what gasoline is doing to the ecosystem. Due to this, many people are seeking to go with the type of cars that are popular at the time. Unfortunately, there's not much society can do about this problem. So, we

1. The first chapter in the book is about the market and its inner workings. The book briefly explains the idea of supply and demand, in which the price of a certain good or service will reach the point where all the demand is equivalent to the supply. However, the value of something is not determined by its necessity, but its desire within society, as seen by the difference in cost between a diamond and life giving water. Markets operate as they do because people try to maximize the amount of utility for themselves. Nevertheless, a strict rationalism model cannot be used for predicting all the occurrences of a market because of the ever changing behavior of people; thus economists must take precautions against

Law of Demand: Downward slope, and inverse relation of price and quantity demand. When price of oranges goes up, the quantity demand will decrease, because of higher price, and substitutes.

The demand of gasoline has increased steadily over the last twenty years. In 1981 the U.S. averaged 6.5 million barrels of gasoline consumption per day. By comparison, in 2004 the U.S. averaged 9.2 million barrels of gasoline consumption per day. For most of this time period, gas prices stayed relatively the same. This is because the U.S. refineries increased their production to meet the demand and maintain the equilibrium price. Also during this same time period worldwide demand for crude oil increased 27%. Crude oil producers also increased their production to meet the demand keeping prices the same.

Drivers realize that the price of gas is tied to the market value of crude oil, and has a direct impact to their daily commutes, errands, and vacations. However the reality is that the price of fuel has implications much grater than most consumers realize. Fuel prices affect nearly everything we purchase. For example, the price of farm commodities and food increase because farmers pay more for the fuel for their farm equipment and trucking firms pay more for fuel to get the commodities to market. These shipping “fuel surcharges” impact all goods

Gasoline prices have tended to raise and fall over the course of time. Consumers in my opinion never seem to be worried about if they will be able to afford gasloine. I do admitt that some of them tend o find alternatives when it comes down to getting around town such as, riding bicyles, carpooling and taking public transportation. For some, this still does not deter them from spending money to get to where they are going. Gasoline is a relatively inelastic product, meaning changes in prices have little influence on demand. Price elasticities can be difficult to interpret, as demand can change for reasons beyond changes in fuel price, including changes in other economic factors, demographics, driver behavior, vehicle fuel efficiency, and other

During 2012 and 2015 gasoline prices have gone done to 2.00 and then went up to 5.00 a gallon that would be in California or big city's like that . A fuel efficient automobile like a high bird and electric cars, have been more popular now they have grown to be a 33.9 percent more popular in the united sates consumers have loved these cars because they can travel u to 100 miles between charges consumers have supported these vehicles since

Supply and demand regulate the amount of each good produced and the price at which it is sold. It is the conduct of individuals as they work together with one another in aggressive markets. “A market is a group of buyers and sellers of a particular good or service. The buyers, as a group, determine the demand for the product, and the sellers, as a group,

Earlier I stated that economics is concerned with consumption and production. We can look at it in the terms of demand and supply. It is simply the quantity of a good buyers wish to purchase at each conceivable price. Three factors determine demand:

The concept of demand is derived from the willingness and ability of consumers to buy goods or services at a particular time depending on prices and preferences. In most cases, the demand for goods and services depends on the affordability and comfort of consumers to purchase them, while holding other factors as constant (Hubbard & O’Brien, p. 70 2013). Basic economic concepts of demand state that an increase in price affects the demand in a negative way; as prices of gasoline increase, the demand should go down. The concept or law of demand is focused on the correlation between the price of gasoline and the quantity of demand for the product. From my observation, consumers are constantly looking for ways to minimize their consumption of gasoline. This century, motorists are opting for fuel-efficient automobiles with the aim of reducing their overall fuel consumption. The theoretical concept of price adjustment by gasoline consumers can affect Edgar’s idea to open a retail gas station. Whenever retail fuel prices increase, in the long run, consumers may retaliate by cutting off the frequency of gas consumption by reducing time spent driving, reduce the number of times they use their car and other methods that will save them from using more money in gas stations. In the short-run, the change in price of gasoline per gallon is not sufficiently volatile to affect consumption significantly. The graph below shows U.S. National Average in gasoline prices

The US consumed 142 billion gallons of gasoline in 2007 and the tax applied on it is 18. 4 cents on one gallon. All around the US, there are around 162,000 retail gasoline outlets. With the price of crude oil hovering around $100 a barrel, it is no wonder that concern is growing about the gas prices being so high. After all, modern economies are kept moving by this lifeblood. For instance, in the United States alone personal vehicles consume more than 140 billion gallons of diesel fuel and gasoline per year.However, there are several factors that contribute to the gas prices being so high. Given below are a few of them. Increasing Demand for Oil One of the main catalysts for the incessant rise in gas prices has been one of the most

The main conclusion is that this paper may be seen as evidence that there is a demand and supply theory that may drive the economic reasoning in the analysis of the causes of real world economic phenomena. The experiment reported gives support to the principle that the interplay of demand and supply is the natural system that connects economic policy decisions and other exogenous variables variations to the observed economic and social consequences. One important side effect is that may be buried the intentionally fabricated law of supply and demand developed and marketed by mainstream neoclassical economists. Sponsors of mainstream false science induced the dismissal of the law of supply and demand by almost all real world researchers. This scientific bias helped mainstream economics to flourish and occupy minds and hearts the world around.

To run a business, the 2 most important things that people should recognise are the Law of supply and demand, because, according to Arthur Pinkhasovich: ‘‘they form the most basic ideas of economics.’’ Whether you are a farmer, manufacturer or simply person who uses a product or service, the fundamental local of supply and demand balance is combined occurring everyday behaviours of our society. Only afterward to understand the fundamentals of these models can the more complicated sector of economics be comprehended.

People today are always complaining about something, and one popular topic is gasoline prices. The older generations reminisce about a time when gasoline could be bought for a quarter a gallon; a big difference compared to the three to four dollars being paid today. It does not help matters that America depends so heavily on foreign countries for our gasoline supply.1 And with the conflict in the Middle East, gasoline prices are as uncertain as ever; the prices rise and fall at the drop of a hat now-a-days. Because of these reasons, along with global warming, scientists have been experimenting with replacement fuel to take the place of fossil fuel. Some of the characteristics that scientists are looking for are availability and low