Essay on Project Part 1 Econ 545

682 Words3 Pages
Everyone’s Gasoline Problem The price of gasoline is definitely driven by the concept of supply and demand. When prices fall, quantity demand will rise, when price rises, quantity demanded will fall. This statement is true in most cases. But gasoline is a necessity to most Americans. The demand for fuel does not decrease when the price increase. Consumers often influence the price of gasoline. Gas prices in the late spring and summer months are the highest during the entire year. These are the periods when consumers drive the most. This is the time when most construction and manufacturing jobs are in operation. Like now, in the winter, gas prices are at the lowest point in a six month period. The six-month gasoline price chart I…show more content…
The equilibrium price and the quantity will increase. The more customers purchase the product, faster Starbucks has to supply the coffee according to the demand of the consumer. The opportunity cost of not producing more premium blend will result in loss of revenue. If a hard freeze eliminate the Brazilian premium coffee crop, the price of premium coffee will be affected. In the short term, Starbucks will slightly benefit from the shortage in premium coffee beans. The demand for this now limited time premium roast blend will definitely lead to a mad rush to Starbucks and stores for this premium blend. The supply curve would shift to the left because of the change in quantity supplied. This causes quantity to decrease with an increase in price. Customers are willing to pay top dollar for something that they prefer. Chapter 8, Question 11 I believe the internet has created a more competitive market. This competitive market has many buyers and sellers. There are many standardized to individualized products in this market. There are really no real barriers to market entry or exit. The Internet has become a platform that has completely changed the way a company can do business. The internet has allowed small business to become multinational operators because of the market chosen. Price and product quality decision can be made using this market because research

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