Supply, Demand, and Price Elasticity Paper

TIlls topic begins by taking this idea further. Petroleum not only provides fuels, but is a source of

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.

Fill in the matrix below and describe how changes in price or quantity of the goods and services affect either supply or demand and the equilibrium price. Use the graphs from your book and the Tomlinson video tutorials as a tool to help you answer questions about the changes in price and quantity

The featured article “The End of Oil,” the author, Alex Kuhlman argues that oil production is decreasing due to the costs of production are rising because cheap and easily accessible oil is hard to find despite increased consumption.(Kuhlman, 2007). Kuhlman (2007) provides evidence both from oil demand and supply aspects to illustrate the imbalance which causes the end of oil.

United States domestic production has nearly doubled over the last several years, pushing out oil imports that need to find another home. Saudi, Nigerian and Algerian oil that once was sold in the United States is suddenly competing for Asian markets, and the producers are forced to drop prices. Canadian and Iraqi oil production and exports are rising year after year. Even the Russians, with all their economic problems, manage to keep pumping. There are signs, however, that production is falling in the United States and some other oil-producing countries because of the drop in exploration investments. But the drop in production is not happening fast enough, especially with output from deep waters off the Gulf of Mexico and Canada continuing to build as new projects comes online. On the demand side, the economies of Europe and developing countries are weak and vehicles are becoming more energy-efficient. So demand for fuel is lagging a bit.

Our world economy depends upon petroleum; petroleum, in fact, has shaped the modern world. It has dictated production technologies and methods. It has facilitated the emergence of a worldwide transportation network. It has allowed cites to grow and expand, and determined the spatial landscape of regions. Due to our great need for petroleum, the scope of OPEC¡¦s power surpasses our prowess as an economic superpower, considering OPEC regulates the output and the price of oil from their reserves.

Abstract—Recent works have indicated that the price of computers is a key factor in explaining the growth of computer spending. However, it remains unclear whether the price elasticity of the demand for computers is constant over time. Findings on the pattern of price elasticity will have important implications in the study of information technology (IT) innovation diffusion. To test the hypothesis of dynamic price elasticity, we extend existing growth models to include a price factor with different elasticity specifications. Nested specifications of three growth models were

Gasoline is a flammable liquid that is made from the refinement of petroleum or better known as crude oil. It helps fuel cars, farm machinery, planes and other type of engines. What is petroleum? It’s a fossil fuel that supplies energy around the world than any other source out there. Petroleum, including gasoline is primarily a mixture between hydrocarbons and small amounts of other substances. In 1994, its known that the United States used up to 7,587,00 barrels of oil a day which concludes that America is the worlds largest consumer in oil. The majority of today’s crude oil is located along side the Persian Gulf Basin with some amounts in Alaska and in

“Our culture runs on coffee and gasoline, the first often tasting like the second.” (Edward Abbey.) Gasoline fuels our active lifestyles. Bringing us where we need to be fast. Gasoline is invaluable to our conduct. There are many things that make gasoline as it is; its elements, how it went through the thresholds, the companies that make it, history of Shell (a leading gas company), how it was realized for its potential, the uses for it, how it is made, where it is made, how it was discovered, how do different cultures use gasoline, and what makes gasoline beneficial to the world.

Since firms facing an elastic demand can increase total revenue when they cut prices, the opposite condition exists when they try to raise prices. With many substitutes in consumption available, a price increase leads to a significant decline in consumption - the percentage change in quantity demanded exceeds the percentage change in price. Producers that raise prices when facing an elastic demand will find that total revenues decrease as the gain from charging higher prices is more than offset by a desertion of consumers to cheaper substitutes, with sales and output falling. When price

The most common crude oil that is very useful in our daily life is petroleum. This can be found underground or in the earth surface. Can you ever imagine using cars without this kind of oil? Though there are already researches that are coming out that we can use water as fuel of cars but this was not yet proven to be true. As Wikipedia defines petroleum (from Greek: petra: "rock" + oleum: "oil". [4][5][6][7][8][9]) is a naturally occurring, yellow-to-black liquid found in geological formations beneath the Earth's surface, which is commonly refined into various types of fuels. Components of petroleum are separated using a technique called fractional distillation.

When oil is distilled (like the water) it becomes a lubricant. The more times or heavier the oil is distilled, it creates varying levels of lubricant. Wax, heating oil, gasoline, polyester, and many artificial chemicals are made from petroleum (oil). Because there is no reliable substitute for oil at this time, these commonly used items -- along with all of electrical systems and transportation -- would be non-existent.

Petroleum is naturally occurring yellow to black liquid found in geological formation beneath the earth surface which is then refined to get various fuels as petrol, diesel etc. It is derived from a Latin word “Petra” which means rock and “oleum” which means oil. Petroleum is generated in a source rock from which it migrates through a permeable and porous medium called the reservoir where it gets trapped by structures namely fault or cap rock. In present scenario, no doubt petroleum industry is governing world’s economy. The petroleum industry includes the processes of exploration, extraction, refining, transporting and marketing petroleum products. The industry is divided into three major streams which are upstream, midstream and downstream. Upstream mainly includes exploration and production of oil wells. Gathering, processing/refining, transportation and storage

Petroleum products are used widely in our everyday lives. They are used to power automobiles produce containers and to keep us warm. Petroleum, or crude oil is liquid composed of various organic chemicals. It is found in large quantities below the surface of Earth and is used as a fuel and as a raw material in the chemical industry. The word petroleum comes from the two Latin words "petro" and "leum" "petro" meaning rock and "leum" meaning oil. The chemical composition of all petroleum is principally hydrocarbons which are a family of organic compounds, composed entirely of carbon and hydrogen. Petroleum is formed under Earth's surface by the decomposition of organisms.

We need oil because it burns to produce energy. We use it to run a vehicle, to heat a building, and to produce electric power in a generator. My family use it for our car which is important because our car gets us to school, my mother to work, and my sisters to their school activities. Oil is also used as a raw material to create products such as plastics, and hundreds of other intermediate goods. Those goods include; paint for houses, carpets, trash bags, and tool boxes. Some other materials that are made from oils are hair coloring, nail polish, shampoo, and vitamin capsules. One of the main types of oils we use everyday is gasoline. Gasoline is the main petroleum product consumed in the United States. Another type of oil consumed is distillate fuel oil, which includes diesel fuel and heating oil. Diesel fuel is used in the diesel engines of heavy construction equipment, trucks, buses, tractors, boats, trains, some automobiles, and electricity generators. Heating oil, also called fuel oil, is used in boilers and furnaces to heat homes and buildings, for industrial heating, and for producing electricity. Hydrocarbon gas