Gas Problems

In: Social Issues

Submitted By big0901
Words 662
Pages 3
1. Everyone’s Gasoline Problems
- In today’s economy the price of gas has sky rocketed due to America’s decision to be less dependent on foreign oil due to the recent discovery of many oil reserves here on our soil. In recent years the gas prices in my area have been declining; however, we have experienced several periods of a steady range of prices meaning they don’t go higher than a certain price while never dropping below another price as well. After doing some research about my areas gas prices I found a chart that shows prices from as far back as 9 years. In our textbook it list out factors that have an effect on supply and demand. In relation to gas prices I think the biggest factor is “the number of buyers”(Stone 1), which is always increasing with each passing year because with a new year comes a new generation of eligible drivers. I think a factor that also plays a big role is “Price of Related Goods” (Stone 1). Although there aren’t any comparable goods to gasoline there are substitutes you purchase or other options of transportation. With an increase in hybrid vehicles they are becoming a substitute for gas powered vehicles while also proving to be friendlier to the environment. I believe this increase of alternative modes of transportation has kept gas prices down because oil companies know that consumers are beginning to take notice to hybrids and their ability to save money while maintaining a level of comfort and style expected by today’s consumers.

*Figure 1-shows the gas prices in Memphis, TN for the last 8 years. ( 2)
Chapter 8 #11
Do you think the internet has helped create more competitive markets or less? Why?
-I think the internet has in many aspects created a more competitive market by creating a price ceiling and base with many products. Not only do consumers research products online but also business owners look…...

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