Microeconomics Is A Branch Of Economics

1715 WordsAug 4, 20147 Pages
Microeconomics is a branch of economics that deals with the problems of decision-making within confined resources allocated, it also depends its research on the single active market and analyzes the potential method in maximizing profit and utility via rational and effective distribution of limited resources. In today 's oil market, there is always the problem of what drives the high and low prices. Demand and supply in market relationship is mathematically represented by the price, quantity and other information about. Oil price reacts to the quantity demand and produced; thus the article of Clifford Krauss on May 23, 2014 “ As Summer Driving Beckons, Gas Prices Are All Over the Map” is an example. Krauss’s article focuses on the different price of gas in the different States of then United States and how they differ from the national average for a gallon of regular gasoline. For example the statistics takes on Friday, may 2014 states that the national average for a gallon of regular gasoline was $3.66 nevertheless the range was sizable: in California, motorists paid on average $4.13 a gallon, while in Missouri and Arkansas only $3.40. As the economy continues to improve at a slow and steady pace, consumer spending, disposable income, consumer confidence and the employment outlook are trending up, which is welcomed news for the travel industry,” said Marshall L. Doney, AAA’s chief operating officer in a commentary distributed by the auto club. Krauss also states that
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