Essay about Eco 365 Week 1

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.

Oil price increases are generally thought to increase inflation and reduce economic growth. In terms of inflation, oil prices directly affect the prices of goods made with petroleum products. As mentioned above, oil prices indirectly affect costs such as transportation, manufacturing, and heating. The increase in these costs can in turn affect the prices of a variety of goods and services, as producers may pass production costs on to consumers. The extent to which oil price increases lead to consumption price increases depends on how important oil is for the production of a given type of good or service.

This is because other dealers in the market will get an opportunity to sell their products in the market. Customers can get products locally with the change. Some suppliers can still get a way of working around the pricing issue to increase their sales.

The price of gasoline is definitely driven by the concept of supply and demand. When prices fall, quantity demand will rise, when price rises, quantity demanded will fall. This statement is true in most cases. But gasoline is a necessity to most Americans. The demand for fuel does not decrease when the price increase. Consumers often influence the price of gasoline. Gas prices in the late spring and summer months are the highest during the entire year. These are the periods when consumers drive the most. This is the time when most construction and manufacturing jobs are in operation. Like now, in the winter, gas prices are at the lowest point in a six month period. The six-month gasoline price chart I

The retailer's price increase to the final consumer is between 4 and 8 cents a gallon, meaning that there is little option for the consumer to shop on price. Further, consolidation has been active in oil as in other industries. A different brand name does not signify that the gasoline is being sold by

Oil is the product that each and every one of us use. It can be used for fuel, heating and even cooking. The most often known for unstable price is crude oil or gasoline. According to the The Economist, The main reason for price shifts of oil is oversupply. The oil production in Saudi rose 10.3 million barrels per day. This increase is the effect of a new method that I being applied to oil extraction. This method is called fracking, fracking is where they drill into tight-rock formations then gradually turning horizontal for several thousand feet more. This results to accommodations to multiple oil wells. This new approved method of oil harvesting has raised the productivity gains and reduced the cost of harvesting oil.

Due in part to globalization, the macroeconomic environment in which the world operates, is now more dynamic. Consumers, particularly those in both emerging and developed nations, must now contend with a litany of adverse conditions that were generated outside the confines of their country. Currently, worldwide stimulus efforts on the part of countries are creating threats of worldwide inflation, currency devaluation, and the erosion of consumer purchasing power. As a result, the policies and actions of one nation affect the consumers in another nation either positively or negatively. Gas prices are no different in this regard. With worldwide money printing the price of commodities overall has risen. As the case indicates in its scenario, gas prices will double. This has adverse consequences in the manner in which consumers purchase products. Due in part to the income effect and substitution effect, consumers will react differently to various stimuli in the macroeconomic environment. In this instance, the doubling of gas prices will ultimately alter the attitudes, perceptions, and behaviors of consumers. As soon depicted in the scenarios above, rising gas prices will have an adverse effect on consumer behavior

The Energy Information Administration of the Department of Energy began tracking weekly gasoline prices in 1990 by means of a survey of 800 service stations around the country. The average retail price for unleaded gasoline posted its fourth record high during the week of June 12, 2000, increasing 5 cents a gallon to an average of $1.681. The price at the pump is higher than the same period last year by 56 cents and has risen 16.2 cents over the past month (Anonymous, 2000).

Environmental scanning can be viewed as a way of acquiring information about outside events that can aid organizations in first identifying potential trends, then interpreting them

Many people assume the reasons for high gas prices, but are unaware of the significant explanations. Most people would speculate the culprits for raising the gas prices are the oil refinery companies because their profit equals billions, but in reality our elevated dependency on gasoline, higher taxes, and environmental regulations are the

This causes the price and the quantity move in opposite directions in a supply curve shift. Also, if the quantity supplied decreases at any given price the opposite will happen.

How many of you have ever sat down and thought “hmm” I wonder what causes gas prices to fluctuate. There is always someone wondering what gas prices may look like five years from now. In 1998 gas cost Americans less than one dollar a gallon, which would be less than $15 to fill up if your car required a 15 gallon tank. As Americans, we are known to fear the fluctuation of gas prices, because we are human. As an average American living in poverty, it becomes quite frightening to think of rising gas prices. I wonder sometimes if I would be able to afford to put gas in my car to travel to and from school and work on a weekly basis. Here’s a quote “they [OPEC] want to go in and raise the prices of oil because we have nobody in Washington that sits back and says you’re not going to raise that f----ing price you understand me?” –Donald Trump(April 2011) (politico.com) I feel that I am qualified to talk to you about variations of gas prices, because as an American citizen who drives 15 gallon tank Honda Accord, are affected by these gas fluctuations day in and day out. Today I would like to inform my audience on variations of gas prices. Many people may wonder why gas prices fluctuate but may have never been property informed on the real reasons why. Here are three reasons I chose to discuss today: 1.) the cost of oil, 2.) natural disasters, 3.) how gas prices affect our economy and stock market. (Topf)

Oil. The very word brings mixed emotions to the mind the minute it is spoken, but with good reason. This single substance has the power to run the entire world, and this is exactly what it is doing. The foothold that oil has on our society can be seen every day with the millions of people worldwide who rely on it to power their cars to their destinations. So how can something that so many people depend on suddenly plummet in price so rapidly? Is the age of oil coming to an end? These questions that demand a deeper investigation into the world surrounding the oil industry.

Environmental problems are something which belongs to nature or known as “Mother Earth” [13]. Nature was created to help people survive from gathering foods until build a house. This phenomenon happens continuously without thinking how much damage that nature has because human’s fault. Nature gradually becomes worse and animal’s life in danger. People who are aware of the importance of nature react. Those people do several ways to save the environment. Although these efforts can return back the environment, these efforts only can be hold temporarily. This problem happens because those people who are aware of the environment only slightly; for remaining, there are people either do not know or do not care about the nature. People’s efforts

According to Mintzberg, the environmental school of thought is a strategy dealing with the forces outside the organization. Unlike the other schools in his book, Strategy Safari, the environment plays a central role in the strategy formation process alongside leadership and the organization where the organization becomes subordinate to the external environment. The environmental school assumptions are that during the formative period of the organization the company shapes itself in response to the environment, but after that period is increasingly unable to respond to the environment. Moreover, the organization long term survival depends on the early choices made during its formative period. Over time, Mintzberg states, leadership becomes