Supply And Demand

Economics ofHigh Pump PricesPeople often take notice of news concerning too high prices of basic commodities such as gasolene be and the impacts of this high oil prices . The reports could go on and on so any government activity essential act speedily with the said issuesGiven a supply and a inquire agenda , with a change in one or more(prenominal) factors affecting them , the graph can be viewed as in the case of Figure 1 . With a certain attach in price of oil , the quantity would decrease and as a result , there would be a wastefulness . With the price hike of petroleum products , there is an inelastic demand for oil since people owning automobiles have no choice of victimisation flatulence as their input to their automobilesBasically , the national government of a certain state must limit the price of throttle products that can be supercharged on consumers ADDIN EN .CITE Inc .Associates for multinational Research Inc Gas prices around the creation 2007June 82005hypertext transfer protocol /money .cnn .com /2005 /08 /19 /news /external /global_gasprices (Associates for International Research Inc , 2005 . How much share wise of the prices of these products the government must lessen should depend on various factors . However , certain producers would react radically if the government forced them to restrict the prices of gasoline products since they have their earnings that must be maintained to compensate the incurred costs in manufacturing the gasoline products . With this action done by the government , they may lose weight some of their human resources such as their employees and casualties to lessen their maintaining costs .

They may also produce lower leveled supplies to lessen their run costsIn another view , rather than raising gasoline prices by increasing the gasoline tax or imposing a tax on people who drive or misdirect fuel in efficacious vehicles for personal purposes , the government must quest automobile manufacturers to produce vehicles that are more fuel efficient and for the meantime prohibit the procedure of certain types of vehicles for personal use such as SUVs since they are claimed to be more polluting ADDIN EN .CITE Adler20034 412Jonathan AdlerAnti-Anti-SUVs Part Deux 2007June 82003hypertext transfer protocol /www .nationalreview .com /adler /adler012703 .asp (Adler , 2003 . The manufacturers needless to say are charged to clean out automobile effluence Figure 1 . Schedule (Internet internality for Management and Business Administration , Inc , 2002ReferencesADDIN EN .REFLIST Adler , J (2003 . Anti-Anti-SUVs , Part Deux Retrieved June 8 , 2007 , from HYPERLINK http /www .nationalreview .com /adler /adler012703 .asp http /www .nationalreview .com /adler /adler012703 .aspAssociates for International Research Inc (2005 . Gas prices around the globe Retrieved June 8 , 2007 , from HYPERLINK http /money .cnn .com /2005 /08 /19 /news /international /global_gasprices http /money .cnn .com /2005 /08 /19 /news /international /global_gaspricesInternet Center for Management and Business Administration , Inc (2002 Retrieved September 13 , 2007 , from http /www .netmba .com /econ /micro /supply-demand PAGEPAGE 1ECONOMICS OF HIGH PUMP PRICES Page...If you want to wee-wee a full essay, order it on our website: Orderessay

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