Should Gas Prices Be Raised

This is because giving up gasoline altogether is much harder. Public transportation or Hybrid vehicles can be substitutes for vehicles powered by gasoline, but it would take time for people to make this transition as majority of vehicle owners are dependent on gasoline. Therefore, an increase in the price of gas would not greatly decrease purchase.

This question is a casual argument because it speculates the consequences in increasing the gas taxes.

To begin, I believe it prudent to discuss the macroeconomic considerations of rising gas prices on both the income and substitution effect. As such, a brief but comprehensive introduction will be needed to help make inference concerning consumer behavior. To begin,

There has been some talk about an “oil-extraction tax.” With this tax in place, it would force companies to fork out more of the tax instead of the consumer. If higher taxes are put in place for the producer ultimately they are not the ones paying the higher price the consumer is. Either way producers will receive revenue and in order to do that they will just raise their prices. The demand for fuel is based on necessity forcing consumers to pay outrageous prices because they need it. In addition to the tax, oil companies would have to disclose more information about their supplies and prices. Since the companies have market power, some believe with the tax in place it would reduce the price of the good.

In today’s society, everyone seems to be in a rush. Convenience trumps nearly anything and everything. The closest and the promptest option is the one we often lean toward, regardless of the consequence or cost. One of the biggest convenience items within the 21st Century is gasoline. Regardless of the price, we often purchase this item at the most suitable site and time, especially when we are in desperate need of the item. Gasoline companies are alert that convenience is ideal; therefore, they alter gas prices to obtain the greatest amount of business.

According to the Daily Bulletin, gas prices are the lowest that have been in the Inland Empire since 2008. The gas prices have dropped for fifteen consecutive days all the way down to the current price, 2.72. This means that over the past holiday weekend when traveling, drivers were able to pay less amounts than usual. Stan Drabek, a truck driver who works in San Bernardino said "It only cost me around 40 dollars for me to fill up the truck this weekend, when before it would be closer to 100"

Although the rising price may not seem to limit the drivers on the road, it does contribute to the growing problem of debt among the country. Resources for gasoline have taken a plunge over the years because now a day’s more and more people are driving on the road, resulting in more people needing gasoline.

From my prospective, I think cheap fuel is a great thing for U.S. drivers because since the fuel is cheap, the monies of the savings could correlate to other increased expenses in our economy. If I am a small business owner that relies on my product of transporting goods to another business, this will save me thousands a year because that savings would go back into my business in other areas such as productions and salaries. The increased spending could jump start the economics of businesses that are low performing with return positive profits. Cheap fuel can also be fantastic for many people in our country. In our society you have to have a general understanding that many people want to control

Lonnie, I enjoyed reading your discussion this week about raising gasoline taxes. I read the article and found it to be a tough topic to grasp. The article states, “A big argument against raising the gasoline tax to provide more money for transportation projects is that the gas tax, by its nature, affects low- and middle-income people more than it does the wealthy.” I found this statement to be very accurate for many other things as well. As we have learned in this class there are many different ideas to change taxes or hourly wages for certain brackets of individuals but we must look at all the consequences this might cause. Raising taxes for gasoline just for individuals who fall into a specific bracket seems to be unfair. After reading the

Recently, ever since I began driving, I realized why low gas prices make some individuals happy and it's common sense, people rather pay lower prices on gas because it allows them to spend more of their income for other aspects of their lives. I know I rather use that extra money for shopping or in order to save it. However, I have also seen how gas prices have affected my life personally through my mom's job. My mom works ,as an Accountant, at Reliable Pumps, which is a company that sells Pumps that extract petroleum, and as the gas prices remain low, it affects their business. The company has felt the need to reduce the hours of their employees and my mom has been affected through that. Both of my parents work ,but we are considered

Should the government set a price on gasoline? This has been an ongoing debate as early as the 70’s.Many Americans feel as if it’s in the governments control to set an exact amount on gasoline. What many don’t understand that I isn’t, it the countries outside of the United States .They can do as they please because of the high demand that will make people pay over the equilibrium price.

We all complain about the $4 gasoline prices -- many with good reason. Anyone who works 50 miles from home and gets 20 miles per gallon is using 5 gallons a day, or $20 just for their commute. That means they are spending $100 per week (not tax deductible) just to earn a living for their family.

Fifty cents of the gasoline tax dollar increase will go towards making the public transit system more feasible to people. This includes more bus stop locations, more arrival and departure times, more accessible train and airplane facilities, and increased safety precautions. Cheaper fares would also be a good means to increase the use of public transportation. In Huntsville, Alabama where the town is trying to have an efficient city system and is doing well at it, the tourist trolley fare is one dollar per trip and two

Just because the government say it's in the interest of the people doesn't mean they really are. Most people think that if the government mandates gasoline then the price of gas must decrease; that's not always the case. In fact there are chances where the price of gas can increase. There are many debates arguing about how much power the government has over us. Giving them the opportunity to mandate gasoline is giving them even more power. If the government see that they are losing fuel, then they may increase the price above the equilibrium to save fuel.

The charts in Figure 1 above show what happens to demand for Large Cars and Small Cars as car costs increment. The D2 line on both charts speaks to the wage impact, while the D3 line on both charts speaks to the expected substitution impact. As gas costs rise, purchasers are generally poorer since gas expenses soak up a greater amount of their extra income. Demand over all cars drops from D to D2 because of the wage impact. On the other hand, since Large Cars and Small Cars contrast in their obliged input of fuel, worse off shoppers will, if compelled to buy a car, pick cars which are less costly to run. Subsequently, some sales of large cars which would have occurred had gas costs stayed consistent do not, while