Economics

Essay 3 by Ed Spithaler eds8@students.uwf.edu Introduction I never really compensable attention to gas set when I first learned to jab in my home town of Evans City, PA in 1969, when a gallon of habitue grade gasoline was about 25 cents /gal. I enlisted in the Air Force in 1973 and was stationed at Victorville, CA, which was about 2,500 miles from my hometown and I al personal manners drove all the air home for my yearly pass. Even then, I planned my vacation during the spring, or fall to avoid the summer gasoline constipation hike, which was relatively pocket-size considering the legal injury of gasoline in Jan. 2011, which was an reasonable of $3.10/gal. and it peaked in Sept. 2011 at $3.56. Why does the gasoline price increase every summer and decrease in the happen? Supply and solicit of Gasoline The study of economics in a free market society helps us see what is incident to gasoline prices. The total quested is how much the consumer is exiting to pay/gal. and the criterion supplied is how much the refineries are giveing to kick upstairs at a certain(a) price. We must also consider the The Law of study states that the consumer impart require less gasoline if the price is utmost and demand more when prices are mortified.

The Law of Supply states that the refineries go away produce more gasoline if the prices are higher(prenominal), because the oil companies will realize a higher profit. If the price of gasoline is low the refineries will produce less. When the summer driving season arrives the demand increases and the refineries impart to produce more gasoline. The Law of Supply controls how the refineries respond an d they harbour to raise the price, so the c! onsumer has to pay a higher price. The spotlight is opposite in the winter. The demand for gasoline is low and the refineries will produce less at a cut price. at that place are other variables that must be factored in that work shift supply and demand levels. Change of Supply and Demand Factors utilize the supply curve on the graph at the ripe(p) we can see how the...If you want to get a blanket(a) essay, order it on our website: OrderEssay.net

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