Gas prices, whether high or low seem to cause an argument between people. Gas prices are such a conversational issue, because they affect almost everyone in the world. They affect people from any range of saving money because it cost less to fill up your car to hundreds of people losing their jobs. Some people benefit from the low gas prices, while others are hurt by them. It is the same way for high gas prices, this is why there is always such a huge argument between the people about gas prices. Although it would seem that gas prices can cause some controversy between people, there are actually several points of common ground between them. People who agree with low gas prices want them to remain low because it will increase their financial …show more content…
According to Jean Folger, in her article “How Gas Prices Affect the Economy” “Gas prices may continue to rise - some analysts have even predicted $6 gas by the end of summer - but it is possible, too, that gas prices will stabilize, perhaps giving the economy a better chance at recovery” (Folger). In Jean’s article she is describing that people will be more finically stable by higher gas prices because they help recover the economy. Everyone knows the American economy is not always perfect. When the gas prices remain at a higher rate, it helps stimulate the economy. The economy can be such a shaky thing in America, and high gas prices are one factor that helps recover it. According to Brian Moody in his article “Why High Gas Prices Are a Good Thing” “Why would high prices on anything be good? The reason is simple: Prices help shape consumer behavior in lots of areas, including clothing, food and housing” (Moody). High gas prices are helping not just people but the economy. Many business are being affected by low prices and not in a good way. Low prices make these businesses lose money. Low gas prices affect the prices of essentially dropping the price of everything because it cost less to transport them. These low gas prices are hurting the financial factor of many …show more content…
According to The New York Times, “The crude oil prices presents a good opportunity for state governments to raise their gasoline taxes to help pay for road repairs” (Board). The raise of gas tax can help fix many things. According to Scott Burgess in his article “It’s Time To Raise The Gas Tax By $1 A Gallon” “The federal government needs to put a $1 tax on every gallon of gasoline sold, which would raise about $140 billion dollars a year, according the estimated 136.78 billion gallons of gasoline used by Americans, according to the U.S. Energy Information Agency” (Burgess). $140 billion dollars a year can change everything for America. It can stop all the cuts we are having to do due to the gas
Americans also became concerned about the gas supply and the possibility of being unable to obtain gas. It was reported that drivers in America were lined up out in the streets for fear of not being able to get gas for their automobiles.
To conclude this analysis, it can be noted that any increases in the prices of fuel will increase Australia’s economy as a whole, in other words the higher the costs of logistics will increase the price of products (Australian Competition & Consumer Commission 2014). The consumers will have to handle the burden of having higher costs of products, which would create an inflation. With the increasing price of fuel, consumers might want to alter their lifestyles, such as using public transportation or even carpooling. Vacations and travelling will also have to be cut down. Australia requires further government intervention to control the price of fuel by subsidizing so that inflation may be curbed.
Regular gas nationally now averages around $2.65 a gallon, compared to $3.45 a year ago. Now the law of demand states consumers will buy more of the product if the price falls; of course when gas was at it's lowest peak everyone was driving around with there a/c on. They would use gasoline more often since it was not hurting their pockets as much. Now there is some instances where other goods and services can drop from gasoline prices. This can include a lawn mowing services and automotive business.
People need oil for daily life and work. Since World War II, oil had caused many serious problems in United States and throughout the world. Remarkably, economic and social problems were heightened by the emerging energy crisis. By 1974, the United States gained a third of its oil by importing from the Middle East.[ James Oakes, et al. Of The People: A History Of The United States (Oxford University Press, 2011), 881.] When the heavy war between Israel and Arabia erupted, the United States was not able to gain enough petroleum because it supported Israel. To show the dissatisfaction with the United States’ support to Israel, Arab members of the Organization of Petroleum Exporting Countries even raised oil prices. “Overnight, OPEC raised the price of its oil from $3 to $5.11/By ”[ Merrill, Karen R.. The oil crisis of 1973-1974: a brief history with documents. Boston: Bedford/St. Martin's, 2007, 22.] Not surprisingly, the United States was strongly affected by the oil shortage and the the high price of oil. Homes and businesses could not easily solve the serious problem. Drastic protests occurred in many states such as Arkansas, New York, and Florida because a huge number of drivers could not accept the high price of gasoline.[ Merrill, Karen R.. The oil crisis of 1973-1974: a brief history with documents, 1.] Transportation was decreased in order to use less oil. Faced to the great challenge, several presidents analyzed the seriousness about the oil crisis and provided effective ways of reducing the use of oil.
The assignment this week presents a problem where the American Automobile Association (AA) generates a report on gasoline prices that it distributes to newspapers throughout the state. It further states that on February 18, 1999, the AAA called a random sample of fifty-one stations to determine that day’s price of unleaded gasoline. The following data (in dollars) was given in this report:
the farmers. America's public needs to be able to spend less on gasoline. Ethanol gasoline would be a sure way of lowering prices. The ethanol that is produced in these plants comes form the corn produced by farmers. The finished product from the plant is completely safe for all gasoline automobiles. The cost that it would take to get the ethanol plants started would be worth the money. Ethanol plants will be expensive to start but they pay for themselves over a few years. Although gas prices might not fall ...
The gas prices started dropping so low that people are available to fill up their cars with gas. There is a good side of these gas prices going down but there is also a bad side. We can say that the good side is people are actually excited because they spend less money on gas and have extra money to spend it on other things. The bad side of the gas price is people are losing their jobs and they sometimes they can't afford for their bills or as simple as not being able to eat.
For over 100 years, the automobile industry has relied on gasoline as its main source of fuel. Gasoline is a colorless, highly flammable substance used in internal combustion engines. It is a fossil fuel made from crude oil, a natural gas formed from the remains of ancient plants and animals (Webster‘s Dictionary). Gasoline has positively influenced our way of life by providing convenient, on demand transportation. It has created a global economy that moves people and goods faster and more easily than ever imagined (Povey 12). Although a seemingly perfect substance, it has unprecedented flaws. The tremendous political, environmental, and economic problems resultant from the excessive use of gasoline leads to the conclusion that the automobile industry should not continue to rely on this source of fuel.
There is a great effect on the economy due to the sale of gas. The major effect of
Another way the changes have helped is by raising the bar for wage expectations. Due to the oilfield paying so well, other businesses have to compete with their pay. Because the cost of living has gone up so much, people can live more comfortably with this raise in pay.
For the Canadian citizens, it is a good thing because low cost of oil equals low price for gas, therefore the people of this country will have extra money in their pockets: “typical consumers will be saving an average of $25 a week, or $300 in three months” says Elna Cain in her article titled Why Are Gas Prices Low And What Does It Mean For Canadians. That being said, other businesses can benefit from the extra amount of cash. In other words, the beneficiaries of this decline in oil prices are not only the citizens, but other business owners as well. The reason why oil prices fluctuate is because of the law of supply and demand, which states that if the supply is low then the price will be high and if the demand is low then the price will be significantly low, which is the case for gas today.
Wright, R. T., & Boorse, D. F. (2011). The U.S. dependency on foreign oil presents many negative impacts on the nation’s economy. The cost of crude oil represents about 36% of the U.S. balance of payments deficit. Wright, R. T., & Boorse, D. F. (2011). This does not directly affect the price of gas being paid by consumers, but the money paid circulates in the country’s economy and affects areas such as the job market and production facilities.
Gasoline is detrimental to the environment, and this is why I propose a gas free economy. Not only is it harmful to the world around us, but it also makes us dependent on other countries. Currently, according to NPR, America gets a good portion of its gas from Latin America, Canada, and Saudi Arabia. Although walking and biking seem like the obvious
b. Opportunities and Threats: The increase in fuel prices is likely to continue into the distant future, requiring either reduced services to control costs or new technologies to accommodate. The threat of low cost, flexible companies entering the markets in a variety of places, cutting into market share in numerous small areas, taken as a whole, threatens to harm larger c...
The article by Mike Moffatt shows the price elasticity of demand for gasoline. According to Molly Espey the average price elasticity of demand for gasoline in the short- run is-0.26 and -0.58 In the long-run, which is a 10% raise in the price of gasoline lowers quantity demanded by 2.6% in the short- run and 5.8% in the long- run.Also, there are a studies were conducted by Phil Goodwin, Joyce Dargay and Mark Hanly at review of income and price elastics in the demand for road traffic and each of them has different study. Furthermore, the realized elasticities depend on factors such as the timeframe and locations that the study covers. If the gas taxes will rise, will cause consumption to decrease.