Exercise Part I
The microeconomic issue that I chose to discuss is “Everyone’s Gasoline Problem”. I will be discussing this topic as a consumer as well as a business economics’ student on why I feel the prices of gasoline has been fluctuating in recent history. This is a very important topic because it affects a lot of people during the current economic times. The price of gas affects food costs, utility costs, and how much it cost for consumers to get from point A to point B whether it’s by car, airplane, or bus. There are many factors that play a part in gas prices –I will be focusing on are supply and demand due to economic issues and the supply of oil. One factor that affects gasoline prices are economic issues. Our current economic status plays a part because people are more cautious of their money during economic hardships than when the economy is doing well. While people will still by gas some are weary of long vacations that require driving far. Gas tend do go up during the summer months usually due to families traveling with their kids. “The more people are on the roads, the less gasoline is usually available and so the more that gasoline costs consumers. The higher the prices serve in some ways as a checks and balances system to prevent the overuse of gasoline during the summer months.” Some companies (including my job) allow employees to telecommute some days which is a great way to save on gas. When people drive less gas usually go down – which still goes back to supply and demand as a result of the economic status. Lastly, the supply of oil affects the price of gasoline prices. There are times when there is a great supply of oil available and gas prices tend to be lower. But then there are times when oil supply is not as available and gas prices go up. Oil supply can be affected by natural disasters and human error. For example, I