This website uses cookies to ensure you have the best experience. Learn more

Summarize An Article On Supply And Demand And Explain Why Changes Occurred In Supply, Demand, And Price.

889 words - 4 pages

As we have all been impacted by the increasing price of gasoline over the last two years. I found an article on the Internet written by Jerome S. Paige and Associate, which is titled "Impacts of Rising Gasoline Prices - A Discussion and Policy Framework." This article was written in September of 2005 and outlines several findings and economic impacts to metropolitan Washington due to the increasing price of gasoline. The main point of the article is to discuss the responsiveness to the ever-increasing gas prices.The article states that even though gas prices have been increasing the demand for gas has not decreased in Washington and in some cases has actually increased. Also the use of public transportation has not increased due to the higher gasoline prices. According to our David C. Colander, the Law of Demand states "Quantity demanded rises as price falls, other things constant or alternatively Quantity demanded falls as price rises, other things constant (Ch. 3, p. 2)." In this case the increase price of gasoline has not reduced the quantity demand for the product. There may be shift factors impacting the increasing demand for gasoline even though the price has also been increasing such as, a rise in income and prices of other goods. The conclusion must be that other area of the consumer market must be impacted, such as reduced consumption of other goods and services to make up for the increasing cost of gasoline.The article goes on to state that in the short run consumers are not adjusting their driving habits but over time and the continual increase of gas prices may lead consumers to carpool or change their driving habits and reduce the number of miles that they are driving on average. Households with below average incomes for the region will be hit harder then average income households. The average income household in the Southern Region is spending $1,400 a year in motor fuel (p.5).Paige goes on to state, "Rising gasoline prices do lead to significant increases in overall inflation." Rising cost of gasoline impacts many other areas of our economy including retail, entertainment, and restaurant businesses. According to an article on Wikipedia.com there are several effects to our economy in the United States and other countries due to increasing gasoline prices such as, reduce purchases of "fuel-thirsty sports utility vehicles and full-sized pickups in the United States, Canada and other countries." The sales of small cars, hybrid vehicles, and diesel engine vehicles, which get better gas mileage, have increased since 2004. There is now an increasing demand for SUVs that are more fuel efficient then past "gas guzzlers."Wikipedia.com goes on to state, "Many business are moving away...

Find Another Essay On Summarize an article on supply and demand and explain why changes occurred in supply, demand, and price.

Supply, Demand, and Price Change Essay

997 words - 4 pages anticompetitive conduct, and to take action where appropriate. This is the only industry in which the FTC maintains this type of a price monitoring project (Federal Trade Commission [FTC], 2005).In a July 5, 2005, article titled “FTC Releases Report on ‘Gasoline Price Changes: the Dynamic of Supply, Demand, and Competition,’” the Federal Trade Commission reports that it issued a report entitled “Gasoline Price Changes: The Dynamic

Causes of Changes in Supply and Demand

588 words - 2 pages buyers. It is the cost of that affect them. When one factor changes, it affects supply or demand, not both. *The causes of changes in supply and demand are based on people's behavior to cost and benefits. This means that when people realize that the costs of an activity have raised or the benefits of an activity reduced, people execute the activity less because the common factor is price. For example, a person buying shrimp fried rice are not

Supply and Demand and Price Elasticity Paper

1041 words - 4 pages lives.Changes in price and quantity influence market equilibriumThe way market equilibrium is influence is basically when the buyer and supplier can come to an agreement on what the right price and quantity are. It influences the market equilibrium by "Any change that measures the quantity demands at every price, it shifts the demand curve to the right and is called an increase in demand" (Mankiw, 2007). If they have changes to price and quantity

Supply and Demand in Dermatology

1204 words - 5 pages and demand of dermatologic care. The demand for dermatological care is relatively inelastic, people generally do not forgo care when they need it even when the price increases. However there are many different factors that can have an effect on demand. As with most things the marginal utility quickly decreases, most people don't need to go to a dermatologist once a month or even every six months. One reason that demand in dermatology is

Supply and Demand Assignment

507 words - 2 pages how changes in price and/or quantity of various goods and services will affect either supply or demand and the equilibrium price. Use the graphs from the interactive activity as a tool to help you visualize the changes in price and quantity.If the price of a good increases, what happens to demand?The demand would decrease. The amount of decrease would be determined by the price elasticity of demand of the good.If the price of a good decreases

Supply and demand simulation

1067 words - 4 pages that were used in the supply and demand simulation they were the changes income, the price ceiling set by the government on the apartments, the prices of other goods (detached homes), and the price of inputs (Good Life Managements profitability).The first key point is the change in income this has occurred because Lintech, Inc chose to set up their headquarters in the town of Atlantis. The new economic growth that Lintech, Inc has brought to the

Supply and Demand Simulation

1205 words - 5 pages the ability to affect the price and quantity of products or services. Macroeconomics Macroeconomics is also part of changes in the supply and demand curve. Macroeconomics is larger events on societal level (Saylor, 2014). The massive increase in the technological industry in Atlantis is an example of macroeconomics. One company or corporation did not drive the change, but a larger economic revolution. The large increases in population lead to

Supply and Demand

2247 words - 9 pages Supply and Demand PAGE 1 Running Head: SUPPLY AND DEMANDSupply and Demand[Name of Writer][Name of Institution]Supply and DemandAbstractThis document will show the friendship between the supply, command, and price changes as a consequence of new and past proceedings. Hurricane Katrina and the War in Iraq have left our petrol communications at such a tip that it was approximately crippled. Political intimidation, though not straight to the

Supply And Demand Simulation

1271 words - 6 pages , affordability of apartments, and price ceiling.Effects of Shifts in Decision MakingDetermining whether the shift affected supply or demand, then if the supply or demand were decreased or increased, and if the shifts were to the left or right had to be taken into consideration before decisions could be made. A supply shift to the right indicated a decrease in the rental rate was necessary, whereas a supply shift to the left indicated an increase

Supply and Demand

1688 words - 7 pages Using demand and supply analysis determine the impact of another event of the scale of that which occurred in the USA on September 11th on the market for hot peppers and crude oil from Trinidad and Tobago.Demand Definition: The entire relationship between the quantity of a commodity that buyers wish to purchase per period of time and the price of that commodity, other things being equal .The quantity demanded of any commodity n (Qdn) is given by

Supply and Demand Simulation

729 words - 3 pages The purpose of this paper is to answer questions pertaining to applying supply and demand concepts presented in the week two simulation (University of Phoenix, 2004). The simulation provides a scenario in which the property management firm, GoodLife Management, experiences varying demand and supply situations due to population and personal preference changes.1. What causes the changes in supply and demand in the simulation?Initially, in an

Similar Essays

Changes In Supply, Demand, And Price

801 words - 3 pages income is decreasing, so the supply is very low. The demand for more discretionary income is greater than it ever has been and the price for assistance has always been very high, until Primerica Financial Services came into existence. This company provides an opportunity to create supply, fulfill demand, and the price is right; it is complimentary.An article in Success from Home magazine (July 2005) states that many of today’s popular

Explain Why Supply And Demand Curves Shift And How Shifts Cause Changes In The Market Price

1900 words - 8 pages supply and demand curve for a certain good or service. This occurs when there is perfect competition in a perfectly competitive market. This is where the market is large enough so that no one individual firm or individual has any appreciable influence on the price of the commodity. In monopolistic or oligopolistic competition this may not be the case, and the price of the good may be determined largely through the actions of one or several

Gasoline Supply, Demand And Price Changes

662 words - 3 pages interrupted by such occurrences as Hurricane Katrina.ConclusionSupply and demand is a fragile economic theory. Altering the supply of any product such as gasoline or oil will have a direct impact on its demand, and eventually, the cost. If there is an sufficient supply of oil, the price will remain constant. If oil is in short supply or if we have political threat or another natural disaster that affects the supply of these assets, and there is

Supply And Demand Article Essay

652 words - 3 pages in the demand of hotel rooms ten years ago did not justify paying high prices for real estate development of new hotel units if the demand was not there at the time (Kovaleski, 2006).I believe this article shows that as supply decreases but demand increases the price will follow with an increase as well. The article cites some of the reasons for the decrease in supply of hotel rooms on several factors such as high cost of real estate and high