$4 Gas: Get Used to it
Read the article above and apply what you have learned in the last couple of days about Supply and Demand. Look at your notes and reference at least two different concepts to the article. What are your thoughts on the article?
8 comments:
After reading the article the two different concepts I have seen in my notes that were shown in the article was quantity supplied and quantity demanded. Because of the gas shortages the suppliers won't be able to supply as much gas for citizens that use cars. After that the quantity demanded for gas will rise because gas is scarce and more people will need gas to go on with their daily lives. Because of the low supply and high demand the gas prices will go up to try and make as much profit as could be made with the little gas sold.
My thoughts on the article is that it shows how supply and demand in a market economy can effect our nation and is useful as an example about supply and demand.
The article talks about "Reports of gas shortages along the high-demand west and east coasts may be fleeting – although deeply concerning – but they highlight a problem that's expected to persist in the U.S.: our refineries are getting old." Because of the high demand there is not enough gas. This does not go with the law of supply, saying the quantity supplies of a good rises when the price of the good rises, in this case that is not happening. Instead of more goods being produced, there is a shortage, making, in this case, the law of supply to be seen as false. Also, this is causing the demand schedule to be at a negative incline. The demand schedule is a table that shows the relationship between the price of the good and the quantity demanded. In the case the article is talking about, with a higher gas demand and a limited amount of gas, this will cause the shortage and the negative increase on the demand schedule. To myself, the gas prices are getting out of hand. The US has so much oil they can access on US soil, if they were allowed to. Instead they are beginning to rely on other places causing the price of our goods to increase and in the long run, causing the value of the US dollar to decrease. the US needs to step up and take action on their screw ups and do what is right. When is all of this going to end? When is the US going to show that we are the world power be begun as, and we can take charge of out situation? All in all, the US needs to step up and take responsibility!!
This article is an example of the law of supply and the law of demand. This shows the law of supply because as prices go up the supply does too and this shows the law of demand because as theprice of a good rises the demand falls.
I feel like this article is not a good example of supply and demand. We talked this week about if the price of good rise, the buyers stray away from buying such product. In this case no person can really refuse to buy gas, there is no alternative, and no "plan B." I think it's pretty much set in stone that Americans will always buy gas because no one is willing to switch to walking or biking. Though I do predict that the demand for gas efficient vehicles will start to boom as gas prices rise. These raising prices makes me a little bummed to start driving, goodbye paycheck.
The concepts described in this article are the concepts of supply and demand. We can see these laws direct impact from evidence of gas prices on the west coast in relation to their hesitancy to purchase gas at that price. These laws are inversely related to one another, and the US is finding this out the hard way. Soon, we will have to utilize these laws to work in our favor, as opposed to them working against us.
What seems to be happening is that the supply is going down for gas due to shortage of oil. Therefore, as prices go up, because the sellers don't want to give what they have left away, demand for gas is decreasing rapidly. So rapidly, in fact, that "out west ... gas stations are shutting down because they cannot buy gas at price levels low enough to turn a profit."
As opposed to what some people say about this article, I do believe this is a good example of supply and demand. Yes, we see gas as a necessity right now, but we don't see people driving around for the sake of driving anymore - the gas is too expensive. People are probably travelling less, searching for work closer to home, etc. Apparently, in some areas, people in general just aren't buying gas anymore.
It's hard to imagine people not buying gas for their car (or lawn mower, I'd like to add), but assume for a second that prices go to $15 a gallon. As the article says, consumer income is increasing too slowly to keep up with the economy now, so would you buy gas at that price? How about $40? We Americans see a lot of things as necessities, but there will be a breaking point, a line that will be crossed where we'll say "it's not worth it."
this article illitrates supply and demand but with supply and demand, as we know,when the prise rises the demand for it drops and vice versa. people are always going to buy gas no matter the price because they need it. so i feel like this article isnt the best use of supply and demand. since the supply for gas is low the demand for it is high and therefor the prices are high. i feel like the demand will decrease over time because electric cars are growing and becoming more popular.
Through the class course and our notes, I was able to find two correlations in the article to what we learned in class. First, when the quantity supplied begins to decline from the normal, the price begins to rise in price. What we can imply is that when the shift of equilibrium begins, prices and the quantity supplied will then have fluctuations and this is evident in the article by seeing how the prices in gas change.
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