I choose to study the supply and demand essay, this is because supply and demand in the market is the cause of the price we pay for goods in the market, and the equilibrium point determines the price of goods. I choose this topic because there is a lot that is associated with demand and also supply, everything either a good or a service in the market has demand and its supply.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. So basically economics is how to produce something people want, whether it is a tangible item or a service to them.
This study however is not as cut and dry as it may sound, for humans are fickle and finicky by nature. The study of economics and be divided into microeconomics and macroeconomics. Macroeconomics is the study of the entire economy in a society.
It takes into consideration the rate of inflation, business cycles, business growth and the rate of unemployment. Microeconomics is the study of individuals and how their choices influence the flow of the economy.
California is one of the largest states in the USA in population and land. Californians choose to drive everywhere and mostly alone, causing the demand for petroleum in the state to rise immensely which increases the supply.
The Law of Supply states that the amount of product supplied increases as the prices increase as long as other factors are constant, and vice versa, if supplies decrease so will the prices. The Law of Demand states that the amount of product demanded rises as the prices fall or prices rise when the amount of product demanded falls so long as all other factors are equal.
An article on Gasoline Supply and Demand by Reuters on August 28, discusses the price increases due to supply and demand of petroleum in the United States. Due to the way Americans are used to living their lives and their every day habits, the demand of gasoline has increased.
According to the U. According to the EIA, gasoline demand has not decreased in the United States for 23 years but high prices in and have reduced the rate at which it increases from levels between 1.
The question is whether or not the American consumer can modify their existing lifestyles due to a tremendous increase in gasoline. The other question is whether the United States government will step in at some point and help regulate the cost of gasoline, or beginning refining the oil that exists in the country.
Refining oil in the United States is met with all sorts of red tape beginning with environmentalists, but that is a topic for another day. In two years the price per gallon has just about doubled. It is still to be determined whether these efforts can be enough to meet the growing demand for petroleum in the country.
There are efforts in the United States to increase production of alternative fuels i. With ever-increasing demand of petroleum, based on population growth, longer commutes by employees and acts of nature, the United States must invest money in existing refineries to increase production along with promoting and supporting alternative fuel development.
The articles emphasized the increase in price due to the increase in demand. This gasoline crisis is forcing the American consumer to modify their driving habits and lifestyles altogether.
Many consumers have begun arranging car pools, are being more efficient with errands and perhaps foregoing a vacation. The most affected by the high prices of gas are the low and middle class families. These two classes are already faced with financial hurdles and the rising cost of gas is making it all the more difficult to survive.
Gasoline Supply and Demand August 28, http: Energy Information Administration at http: S refiners stretch to meet demand Schoen, John W. November 11, Retrievedon July 10, at http:Supply and demand is one of the basic concepts in understanding of forces in the market.
In understanding market forces, supply and demand refers the concept of need and supply of goods and services in the market.
This is an economic model mainly based on price, utility and quantity. This model is .
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summer on ice cream demand. 3. Supply & Demand Essay Examples & Outline. Are you in High School, College, Masters, In conclusion, the demand and supply of the product have high influence on its price. However, there are some exceptions to the economic theory where, the demand for certain products, particularly essential commodities, remains constant when the prices.
Some of the most important concepts in this process include supply and demand, consumer choice, aggregate supply and aggregate demand, and elasticity. Overview of Macroeconomics and Microeconomics Macroeconomics and microeconomics are two components that relate to economic activity and processes.
The effects of supply and demand are clearly demonstrated in the automotive parts supply industry. Due to the increased consumption of new and scrap steel in China, a relatively new world manufacturing market, the supply of steel for the rest of the world has decreased/5(17).