Economics Is A Large Part Of Our Lives

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Economics is a large part of our lives. It has been a part in building our society, and we follow many of its concepts daily. The basis of our decisions such as what to do with our time or money, the study of economics can explain them. In this paper, I will present my own three Case in Point boxes that demonstrate a few economic concepts. This Case in Point box is designed to replace the one from Section 5.1: Price Elasticity of Demand No Matter What the Cost, We Will Take it Source: U.S. Energy Information Administration Every day, the U.S. expends thousands of gallons of gas driving to the store, picking up their kid, going to work, or driving to places they want to visit. Driving generally allows faster and simpler means of…show more content…
In 2000, the total fuel consumption for motor vehicles in the United States was 162,554 million gallons of oil. After 12 years of price increase, the average price of fuel in 2012 was $3.68 with fuel consumption reaching 168,395 million gallons. The estimated price elasticity of demand for the years 2000-2012 is 0.025 and therefore price inelastic. As shown in the graph, over the course of 12 recent years, there hasn’t been much change in gas consumption. Despite some years having a drop or rise in gas prices of almost 30%, the greatest changes in year-to-year consumption have only been about -4% and 2.4%. Although gas prices can increase greatly, they remain an important part of getting around. While there are alternatives such as walking or public transportation, driving may be the better option. People need to get to work and get around and driving is usually more convenient. In addition, prices won’t stop trucks and people from delivering goods and services because there aren’t many good alternatives. Sometimes increased prices will cut down consumption a bit, but people cut back on other goods and non-necessities. This Case in Point box is designed to replace the one from Section 3.1: Demand Out With the Old, In With the New A little over a decade ago, Blockbuster was a popular and massive chain store for game, movie, and video rental. Dominating the movie rental market with over 9,000 stores, 25,500 employees, $500 million in annual profit and

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