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Everyone Gas Problem

In: Business and Management

Submitted By bajangal4
Words 930
Pages 4
Exercise 1: Question 1
Everyone’s Gasoline Problem
Due to the supply and demand, gasoline has become a very dependant aspect of our lives. Supply is the amount of product available on the market and demand is how of the product is demanded by the consumers. In this respect, when demand increases so do the prices and supply decreases and when demand decreases, prices go down and supply will then increase. Through observing and researching, it shows that they are just as important in maintaining market equilibrium. Therefore retailers of wholesale products impact the economy when they increase prices such as what is being done with the gasoline at this time. Gas prices have seen some fluctuations over the past twelve months with a steady increase happening over the past six months in the state of Virginia and I’m sure the entire nation has seen the same. These fluctuations have been due to the economical crisis throughout the world. Some attribute the conflict in Iraq as the main problem. Other causes can stem from natural disasters, or political ties among leaders.
In researching the price history of crude oil, it has fluctuated between $72 to $113 between January of 2011 and January 2012. However within that same time period Virginia’s prices fluctuated from $2.99 to $3.93 with the highest price being May of 2011. Seeing the prices on a continuous roller coaster can prompt consumers to be more mindful of their travel intentions. As consumers however, it is difficult for us to understand when someone in government will step up to the plate and figure out a way to make things better for their constituents.
Crude oil contributes to basically everything in the world. In order for the food to be processed and delivered the businesses need crude oil in its refined matter. In this manner we see an increase in food items, gasoline for employees to get to work,

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