Here is the synopsis of our sample research paper on THE ECONOMICS OF ENERGY: FLUCTUATING GAS PRICES. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 3-page paper focuses on potential reasons, from an economic standpoint, for fluctuations in gasoline prices. Bibliography lists 1 source.
Page Count:
3 pages (~225 words per page)
File: D0_MTeconooil.rtf
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Unformatted sample text from the term paper:
is available, demand goes down, and prices go down. If not enough of a good is available, demand goes up, and prices move up as well.
However, as most people are finding out in recent years, when it comes to energy, particularly oil and fuel, the laws of supply and demand
arent exactly working. Oil prices skyrocketed last summer, even though demand wasnt much larger than it had been the year before. And these days, gasoline prices are falling - again,
with no discernable reason. Certainly people have cut back on their gas consumption due to rising prices. But the decline in gas prices goes way beyond what could comfortably fit
within the supply-and-demand theory. A little more than a year ago, when the U.S. set a "record" in gasoline at $3.10 per
gallon (small, when compared to the more than $4 per gallon it would hit a year later), Edmund Andrews wrote in the New York Times that politicians lambasted the energy
companies, accusing them of price-gouging to gain record profits. However, margins of oil companies continue to be razor thin (despite the profits). The increase in gas prices is because of
increases in crude oil, rather than the law of supply and demand (Andrews, 2007). Economists point out that gasoline demand is inelastic
- in other words, people cant quickly reduce consumption when prices increase (Andrews, 2007). This is why, they point out, abrupt shortages lead to price increases, but sales are at
the same level (Andrews, 2007). In other words, demand lags behind supply, with supply driving demand, rather than vice versa. On
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