Gas Price Fluctuation Analysis

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A recent price shift that all American drivers have experienced is the constant fluctuations of gas prices. As I turned 16 in 2013 gas prices were on the rise ranging from $3-$4 across the nation. For many Americans it caused them to make economical decisions on what vehicle to buy taking on extra jobs to pay for gas, cutting out vacations because of the high gas expense. During 2013 I would even struggle filling up my dodge pickup every week and realizing how much money I was spending just on gas. However, in 2016 prices have decreased to $1-$2 dollars. If we look back on the history of gas prices we can analyze that reason gas prices change so often is based on the amount of crude oil. Since oil is the main input for producing gasoline, so if there is a rise in oil price than gasoline price must rise as well. Many factors go into affecting gas prices, but one example in particular is the detriment of…show more content…
One product in Arkansas that is always on high demand are yeti cups. Many stores sell out the first day they get shipments in causing customers to visit many stores to find the product. A shortage of product is defined as the amount by which the quantity of demand of a product exceeds the quantity supplied at a particular price. If I were a manager store where I experienced a shortage of a high demand item, such as a yeti cup, I would find a different producer or multiple producer to supply the store with that product. For example since the yeti cup there have been many similar stainless steal cups that have been produced. These cups are usually a lower price and have a different brand name, and design. By brining in a yeti competitor this will drive the demand of the Yeti cup down. Consumers will begin to buy what is available which will satisfy them decreasing the supply for the yeti and eventually benefit the store because these consumers are buying form us instead of looking for the cup
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