Premium Essay

Paper Project 1

In: Business and Management

Submitted By moorishamerican
Words 725
Pages 3
Business Economics GM545
January 2013

Everyone’s Gasoline Problem

The fluctuation of gas prices occurs because of a number of factors; the price of crude oil, the price of manufacturing, the price of corn is all tied to the price of oil and the price we see at the pump for gas.
In 2011, the United States consumed about 134 billion gallons1 (or 3.19 billion barrels2) of gasoline, a daily average of about 367.08 million gallons (8.74 million barrels). This was about 6% less than the record high of about 142.38 billion gallons (or 3.39 billion barrels) consumed in 2007,according to the Department of Energy ("How much gasoline," 2012). Of that, almost half is used for motor gasoline. The remaining is used for distillate fuel oil, jet fuel, residual fuel and other oils. Each barrel of oil contains 42 gallons (159 L), which yields 19 to 20 gallons (75 L) of gasoline. ("How much gasoline," 2012). So, in the United States, something like 178 million gallons of gasoline is consumed every day. The fluctuations of gasoline prices are a classic economic example of supply and demand in the market. If the demand for corn or oil increases or if a decrease in supply occurs, this then causes an increase in gasoline prices. On the other hand, if demand for corn or oil decreases there will be an oversupply of products and the prices will decrease. The seasons and US holidays may also have an impact on the price of gasoline at the pump. Americans travel more during the summer and over the holidays, and the price of fuel increases during these times to meet the demand and maintain the market equilibrium.

Chapter 3 Question 14

Assuming that the demand and supply for premium coffees are in equilibrium, the price will remain more or less constant. If no significant expectations emerge in the market, we expect for the supply to also remain constant. If Starbucks...

Similar Documents

Premium Essay

Project 1 Paper

...1. Everyone’s Gasoline Problem. We are all familiar with fluctuating prices of gasoline at the pump. Why does this happen? Research the recent history of gasoline pricing in your area, and attempt to relate any fluctuations you observe to documented supply and demand factors outlined in our book. Be sure to cite any references used. * Gasoline prices rise and fall depending on supply and Demand. Gas prices are impacted by a number of factors, each individually placing its own pressure on our overall energy system. Some affect the price of crude oil and others affect the cost of producing and marketing gasoline, but combined, these factors greatly impact the fluctuation of gas prices that we experience on a daily basis. Changes in crude oil prices - Crude oil prices are determined by worldwide supply and demand, with significant influence by the Oil Producing and Exporting Countries (OPEC) as they determine how much oil to produce and sell to other countries. The more crude oil OPEC chooses to produce and release, the lower the price. Additionally, because oil is traded in a world market, events in remote areas affect the price of crude oil for almost everyone.  In recent years, worldwide events that have impacted gas prices include: Decisions by the OPEC cartel to raise production quotas slowly and reluctantly after having reduced them in 2002. * An increase in worldwide demand for oil, including unexpected demand growth in China, India, and other quickly developing......

Words: 1280 - Pages: 6

Premium Essay

Paper for Project 1

...Everyone’s gasoline problem The fluctuation in gas prices can be caused by many different reasons. One reason has to do with the economic growth of other countries and their demand for oil. Just like the book says, as demand for a product rises than the price for that product will do the same. Countries like China, India, and Brazil are making an economic growth that’s required more and more energy. Because most of the world’s oil comes from the same place, their growth impacts our gas prices as well. Here is a chart of what is the Dow Jones Industrial equivalent for Brazil. This chart shows that Brazil has reach a very high economic growth and are at a point where their demand for energy is extreme as well. Other factors that play a part is the fact that gas prices rise and fall as crude oil does. This chart shows average retail price of oil and gas in Houston. This shows a direct correlation between crude oil prices and the prices we as consumers pay for gas. As crude oil rises and falls so too does the gas prices. Oil and gas is an inelastic commodity. This is why the demand for gas hasn’t really diminished while the price of gas has risen. Because it is difficult to reduce spending on gasoline, the effects of price increases are often shifted to other economic sectors. Some economists estimate that for every one cent increase in the price of gas, spending in...

Words: 922 - Pages: 4

Premium Essay

Economics Project 1 Paper

...Business Economics Project Paper 1 January 2011 1) Everyone’s Gasoline Problem Gasoline prices in Chicago have risen from $2.64 to $2.92 between September 2009 and September 2010(2) with a series of price changes in between. Prices change for a number of economic reasons. One such reason is supply and demand. Gas prices rise after 9/11 and after the start of the war with Iraq, it seems to rise when there is any major crises. Supply and demand plays a major part in the fluctuation of gasoline prices. The price of crude oil can and does influence the supply and price of gasoline. When the price of oil rises, the cost of supplying gasoline increases for petrol suppliers, reducing the quantity of crude oil demanded in gasoline production and potentially reducing the supply of gasoline. So its expected that a rise in the price of crude oil to lead to a rise in the price of gasoline. Even when crude oil prices are stable, gasoline prices can fluctuate because of reasons such as the season and local retail station competition. Additionally, gasoline prices can change rapidly due to crude oil supply disruptions stemming from world events, or domestic problems such as refinery or pipeline outages.(3) Crude oil prices are determined by worldwide supply and demand, with significant influence by the Organization of Petroleum Exporting Countries (OPEC). OPEC has tried to keep world oil prices at its target level by setting an upper production limit on its members.(3) also......

Words: 1124 - Pages: 5

Premium Essay

Course Project Paper 1

...Course Project Paper 1 David J Marshall Business Economics GM545 Winter Term 2012 Exercise 1: Microeconomics Issues: Question # 1 There are two reasons gas prices must go up. The first is to get people into coal-powered cars. Coal-powered cars can only be driven around 40 miles before they must be plugged back into the grid for more coal power. If everyone moves to coal-powered cars, the drivers will be forced to live closer to cities (Erickson, 2011). According to my current reading, when you look at the term product differentiation in buying your gas, this term gives competitors the edge to host the cheapest gas (Chapter 10:253). In the current week, the Shell gas pump went from $3.65 to $3.57 per gallon and the week before that the gas price during week 1 was $3.47 expecting to rise to $4 per gallon in Lexington, KY. During my travel to Indiana the gas prices average $3.99 per gallon. In using the midpoints of price and quantity to compute the relevant percentage changes essentially gives us the average elasticity between point (a) and point (b) (Stone, Gerald. “Core Economics” Worth Publishers, 07/2011. p. 118). My equation below may show just exactly how these price may increase or decrease based on the elasticity formula: Eᵈ = 200 / 400 ÷ 3.65 – 3.57 / (3.57 + 3.65) / 2 = 200 / 400 ÷ (- 0.08 / 5.3950) = .5 ÷ -0.0148 = [-33.72] = 33.72 I think for the most part of our gas prices has increase due to determinants of our......

Words: 762 - Pages: 4

Free Essay

Project Paper 1 Econ545

...Baker Business Michele Economics GM 545 Summer A 2009 Project 1 Email: 1 Gasoline Prices Supply and demand have played a large part in the increase of gasoline prices the nation has experienced lately. The Law of Demand clearly indicates that the rise in demand for gasoline will lead to an increase in prices. This has been a topic that seems to continue coming up in conversations both in the classroom as well as everyday interaction as it seems to be affecting everyone. Some cannot afford to put gas in their SUVs anymore because the prices have been fluctuating and continuously increasing over the last couple of years. Even though I have read several research studies and articles on this before, I found a very interesting point that I had not previously heard of or thought about. I have often wondered what we as Americans can do to reduce demand of gasoline, since the increase in demand has obviously led to the rise in petroleum prices. However, this study shows that the problems may be stemming from the increase usage in both China and India to power their cars and factories. Unfortunately, there is nothing we can do to reduce the demand that other countries are creating. The article suggests that really the only thing that Americans can do is to decrease their personal demand for the fuel by getting rid of the gas guzzling SUVs or turning to alternative sources of transportation. Here in Arizona one of the skeptics of the gasoline price hike was...

Words: 1802 - Pages: 8

Free Essay


...The digitization project is being launched with 2,000 high-quality images on March 19, 2012. The project will continue throughout 2012. Over 80,000 records of documents held in original and as copies in the Albert Einstein Archives at the Hebrew University (AEA) and at the Einstein Papers Project at Caltech (EPP) can now be accessed with a user-friendly interface via the internet. The system offers easy navigation, displaying the search results and additional information such as filters, related topics and similar items. Some of the digitized documents are accompanied by annotated transcriptions and translations, as edited by the EPP and published in the Collected Papers of Albert Einstein by Princeton University Press (PUP). These documents are searchable as full text. The Albert Einstein Archives include scientific writings and correspondence, non-scientific writings and correspondence, family letters and travel diaries. Einstein Archives Online presents images of Einstein's handwritten manuscripts; it includes correspondence, typewritten manuscripts, photos, audio material, etc. A word about the sponsors The newly launched digitization project is funded by The Polonsky Foundation UK. Through this foundation, Dr. Polonsky has initiated similar enterprises, such as the digitization of the writings of Sir Isaac Newton at the University of Cambridge. The website was launched in 2003 by the Albert Einstein......

Words: 283 - Pages: 2

Premium Essay

Gm 545 Project 1 Paper

...Business Economics GM545 Summer Session A July 2011 One Question One: Everyone’s Gasoline Problem Gas prices are constantly fluctuating with reviewing the text we see where the United States has depended on the Middle East to purchase the crude oil to manufacture the gas needed to fuel our cars. (Stone, 2007) It was evident that there were issues during the years of 2006 and 2007 when we seen the biggest rise in gas at that time there was not much we could do we needed to purchase the gas to use for everyday functionality throughout the United States we seen here in the state of Florida (Jacksonville) particularly that the prices went from $2.10per gallon to an all time high of $3.06 this increase was not gradual it was almost overnight when this increase was a period just about a month. This tended to come from some events that occurred in the following countries Mexico, Iran, Iraq, Israel, India, and North Korea that have energy markets on edge and the crude oil prices were heavily elevated at that time. (Jacksonville Bussiness Jornal, 2006). When looking at recent information that has been collected on gasoline prices we tend to look at earlier month May 2011, Jacksonville Florida was getting near the $4.00 per gallon with that we then seen a drop in prices from $4.00 down to $3.85. Typically this is when the summer driving season is starting and the elasticity for fuel starts to rise and continues to do so along with that need for gas the prices rise along with......

Words: 1334 - Pages: 6

Premium Essay

Gm 545 Project Paper 1

...Business Economics GM545 Feb/2012 The gas prices in my area have significantly increased within the past few weeks. I reside in Silver Spring Maryland and my Nissan Maxima requires premium fuel.  The current price at Shell for premium gasoline is $3.999.  I'm paying $4 a gallon for gas.  Fox five dc news reported that last year around this time, the price for regular gasoline was $3.25 a gallon (   The gas prices lately have not been stable and since the recession started in 2008 the gas has been fluctuating around $4 a gallon for regular oil. Gas prices fluctuate for many reasons which include the price for crude oil in the world market, supply and demand for gasoline, local competing gas stations, government regulations, and taxes. Crude oil prices are 55% of the price of gas and distribution and tax account for the remaining 45% (  The demand for gas occurs around summer vacation and major holidays where motorist consume the most gas.  When people drive less and use other means of transportation like, car pools, public transportation, and bicyclist, this brings the demand down.      The average price in Maryland for regular gas is $3.626 compared to a month ago at $3.416.   The highest gas stations in the area our in Montgomery county, where as locations like Baltimore county and Waldorf have cheaper priced gas.  Another aspect of the lower prices is that these our......

Words: 950 - Pages: 4

Premium Essay

Mgt437 Project Management Paper - Week 1

...Project Management Student Name Project Management MGT/437 Date Instructor Project Management According to "Project Management" (2004), Project Management is “a methodical approach to planning and guiding project processes from start to finish.” By following an established project management life-cycle businesses can ensure the established goals and objectives of the organization are realized in a consistent and uniform manner within a defined timeframe and within budget. A brief definition of a project with key characteristics is presented within this paper. Each phase of the project life-cycle, including the definition phase, planning phase, implementation phase, and closure phase are also identified and discussed. In addition, key reasons to underline why it is important for businesses to apply project management techniques to accomplish tasks required to achieve the established goals and objectives are provided. A project is set of related tasks executed to achieve a set of objectives and goals within an established timeline and an approved budget. Projects are temporary and can be short-term (a few days, few weeks, or a few months) or long-term (multiple months or years). Each project is unique in scope, schedule, and budget. Projects consist of a Definition Phase, a Planning Phase, an......

Words: 1172 - Pages: 5

Premium Essay

Gm545 Keller Graduate School Project 1 Week 2 Paper

...Exercise 1 - Everyone’s Gasoline Problem It seems like gas prices change on a daily basis for the better or for worse. I spent the week studying the gas prices in my area as I drove by different gas stations. It’s amazing how the prices can different from area to area, company to company, and even the same company but just a mile few miles apart. The simplest answer is supply and demand but what actually goes into the decision making part of what gas prices should be? Research shows that 50% of the price of gas is based on the price of crude oil. This is what is refined and turned into gasoline. (Energy: demand vs. supply) Companies have to purchase crude oil to make into gasoline. This cost of purchasing the oil and refining it is then passed down to the customer. As the demand for crude oil or gas goes down, so do the prices. This can happen during recessions or when people travel less. As the demand increases, prices can go up, like during the summer when consumers travel more. Location can also contribute to the price of gas. Some locations can tend to have lower prices because of competition. They’re considered perfect competitive firms because they have to have the best price for the customer to want to come in and purchase their gas. I usually use the Safeway gas pumps instead of going across the street to the Arco station because I can receive a discount but the price is usually always three to five cents less than the Arco station. As I continue to drive......

Words: 1016 - Pages: 5

Premium Essay


...Credits) Version 6 Project Management Puerto Rico Campus - Guaynabo Copyright © 2009, 2008, 2006, 2004 by University of Phoenix. All rights reserved. Course Description This course examines project management roles and environments, the project life cycle, and various techniques of work planning, control, and evaluation for project success. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Kerzner, H. (2006). Project management: A systems approach to planning, scheduling, and controlling (9th ed.). Hoboken, NJ: Wiley. Meredith, J. R. & Mantel, S. J. (2006). Project management: A managerial approach (6th ed.). Hoboken, NJ: Wiley. All electronic materials are available on the student website. Microsoft® Project® 2007 (Virtual Desktop) Week One: Project Definition Details Due Points Objectives 1.1 Determine the importance of project......

Words: 3035 - Pages: 13

Premium Essay

Introduction to Testing

...IBM, Bangalore A White Paper Challenges of Managing a Testing Project: (A White Paper) A White Paper Page 1 of 20 Vinod Kumar Suvarna IBM, Bangalore A White Paper Introduction Testing is expected to consume 30 – 50 % of the Project Effort, Still properly managing testing project is not considered seriously. Project Managers always undermine the impact the testing activity has on the Project Cost and Schedule. Hence the testing activity is usually unplanned and uncontrollable. As the project manager assumes that the main focus of the testing activity in the project is not to meet the project schedule. But Its is a reality that a thorough and close monitoring of the Testing project is required to increase productivity, reduce cycle -time and improve quality. Below pie chart depicts the Project effort distribution by phase for a development project, where independent testing team performs the testing activity. Project Effort Distribution by Phase 21 35 Requirement Design Code & Unit testing Testing 25 19 A White Paper Page 2 of 20 Vinod Kumar Suvarna IBM, Bangalore A White Paper The Problem / Issues / Improvement Opportunity in Hand: Ask a Tester ‘Why he/she needs to burn midnight oil to churn a Quality Product?’ Answer is obvious ‘Needs to put extra time and effort to overcome the Project schedule slippage ‘ Ask a Project Manager ‘Why the Project is in trouble during the last phase?’ Answer is obvious ‘Not Sure, Did not......

Words: 2954 - Pages: 12

Premium Essay


...Capstone Project Management Plan – Spring 2014 Student Simohamed Roudani Instructor Mr. Sparling Date Delivered 02-09-2014 PALANNED USED KIND OF WORK THE REAL WORK HOW IT IS SUBMITED weeks DATES JAN-13 DAY Mon ACTIVITY Review course syllabus DELIVERABLE Email HRS 2 HRS 1 Going through the syllabus to see what I should know Talk the librarian Read the syllabus carefully email 1 JAN-14 JAN-15 JAN-16 JAN-17 Tue Wed Thu Fri Try to make the appointment with the library Post on the DT Post the response Pose the second response Via phone Internet Internet Internet 2 0.25 0.25 1 0.25 0.25 Set up the appointment Post my own thought about the course and introduction Response my colleges Response my colleges E-campus E-campus E-campus E-campus Discussion Discussion Discussion JAN-18 Sat Read How Full is Your Bucket BOOK 4 5 Reading Reading , and send an email to My instructor Email JAN-19 JAN-20 Sun Mon Day off school Post on the DT Internet 2 2 Discussion Post my own thought about the course and introduction E-campus 2 JAN-21 JAN-22 JAN-23 Tue Wed Thu Post the response Post the response Reading about Bloom`s Taxonomy Internet Internet Online 0.25 0.25 3 0.25 0.25 4 Discussion Discussion Research paper Response my colleges Response my colleges Searching online about taxonomy and getting references from the library to write the paper E-campus E-campus Online JAN-24......

Words: 1776 - Pages: 8

Premium Essay

Res 531 – Research Methods – Complete Class Includes All Assignments and Final Project Paper

...All Assignments and Final Project Paper Purchase here Product Description RES 531 Week 2 Assignment 1 – Topic Selection RES 531 Week 3 Assignment 2 – Context of the Problem RES 531 Week 4 Assignment 3 – The Problem Statement RES 531 Week 6 Assignment 4 – Research Questions RES 531 Week 7 Assignment 5 – Significance of the Study RES 531 Week 8 Assignment 6 – Research Design and Methodology RES 531 Week 9 Assignment 7 – Organization of the Study RES 531 Week 10 Assignment 8 – Tentative Reference List RES 531 Week 11 Research Proposal Paper – Final Project Paper RES 531 – RESEARCH METHODS – Complete Class Includes All Assignments and Final Project Paper Purchase here Product Description RES 531 Week 2 Assignment 1 – Topic Selection RES 531 Week 3 Assignment 2 – Context of the Problem RES 531 Week 4 Assignment 3 – The Problem Statement RES 531 Week 6 Assignment 4 – Research Questions RES 531 Week 7 Assignment 5 – Significance of the Study RES 531 Week 8 Assignment 6 – Research Design and Methodology RES 531 Week 9 Assignment 7 – Organization of the Study RES 531 Week 10 Assignment 8 – Tentative Reference List RES 531 Week 11 Research Proposal Paper – Final Project Paper RES 531 –......

Words: 1071 - Pages: 5

Free Essay

Cis 333 Wk 10 Technical Project Paper

...CIS 333 WK 10 TECHNICAL PROJECT PAPER To purchase this visit here: Contact us at: SUPPORT@ACTIVITYMODE.COM CIS 333 WK 10 TECHNICAL PROJECT PAPER CIS 333 WK 10 Technical Project Paper - Information Systems Security Write a ten to fifteen (10-15) page paper in which you: 1. Identify and analyze any potential physical vulnerabilities and threats that require consideration. 2. Identify and analyze any potential logical vulnerabilities and threats that require consideration. 3. Illustrate in writing the potential impact of all identified physical vulnerabilities and threats to the network and the pharmacy. 4. Identify all potential vulnerabilities that may exist in the documented network. 5. Illustrate in writing the potential impact of all identified logical vulnerabilities to the network and the pharmacy. More Details hidden... Activity mode aims to provide quality study notes and tutorials to the students of CIS 333 WK 10 Technical Project Paper in order to ace their studies. CIS 333 WK 10 TECHNICAL PROJECT PAPER To purchase this visit here: Contact us at: SUPPORT@ACTIVITYMODE.COM CIS 333 WK 10 TECHNICAL PROJECT PAPER CIS 333 WK 10 Technical Project Paper - Information Systems Security Write a ten to fifteen (10-15) page paper in which you: 1. Identify and analyze any potential physical......

Words: 496 - Pages: 2