Eco 365 Week 1
Article analysis:
Pump Prices and Oil Prices: A Tale of Two Different Directions
By
Ernest Guillen
University of Phoenix
ECO/365 Ver.4 Principles of Microeconomics
Instructor: Dr. Christina Espinoza-Alguera
Abstract:
The following article is regarding what is most important to everyone around us regarding the pricing for gasoline at the pumps. This is a topic that concerns most people on this planet, why are the prices for gasoline so high and is it regarding the greed of oil producing companies to continue to keep rising the gasoline prices as high as possible. We will discuss the many reasons why these fluctuating pricing keeps occurring within our world market. We will use the retail gasoline pricing between the years of 2000 to 2007 to research this report.
Introduction: Gasoline pricing is a constant irritate for many of us who are not happy about the high cost of fuel and why it remains high. We can use empirical results that can provide evidence to this very contention of high fuel expense if we research the following: Asplund et al. (2000), Bacon (1991), Borenstien et al. (1997), and Peltzman (2000). These explanations can provide some prime evil example of why the costs are constantly affected in our everyday life. When crude oil is produced it provides the cost per barrel depending on how many barrels it’s producing, therefore if the price is $ 80 dollars per gallon it may in fact cost the consumer the same amount by the cost of fuel per gallon. (Rising Gas Prices)
Article Review of Pump prices Oil prices: The following information within this article relates that there is in fact a variable that continues to cause and affect our Oil and Gasoline pricing. These pricing effects can either the cost of oil per barrel; the higher the barrels are the higher the cost of fuel will be indicated. The other flip side to this equation is that if the demand falls off of the expected earnings we can also be affected
Pump Prices and Oil Prices: A Tale of Two Different Directions
By
Ernest Guillen
University of Phoenix
ECO/365 Ver.4 Principles of Microeconomics
Instructor: Dr. Christina Espinoza-Alguera
Abstract:
The following article is regarding what is most important to everyone around us regarding the pricing for gasoline at the pumps. This is a topic that concerns most people on this planet, why are the prices for gasoline so high and is it regarding the greed of oil producing companies to continue to keep rising the gasoline prices as high as possible. We will discuss the many reasons why these fluctuating pricing keeps occurring within our world market. We will use the retail gasoline pricing between the years of 2000 to 2007 to research this report.
Introduction: Gasoline pricing is a constant irritate for many of us who are not happy about the high cost of fuel and why it remains high. We can use empirical results that can provide evidence to this very contention of high fuel expense if we research the following: Asplund et al. (2000), Bacon (1991), Borenstien et al. (1997), and Peltzman (2000). These explanations can provide some prime evil example of why the costs are constantly affected in our everyday life. When crude oil is produced it provides the cost per barrel depending on how many barrels it’s producing, therefore if the price is $ 80 dollars per gallon it may in fact cost the consumer the same amount by the cost of fuel per gallon. (Rising Gas Prices)
Article Review of Pump prices Oil prices: The following information within this article relates that there is in fact a variable that continues to cause and affect our Oil and Gasoline pricing. These pricing effects can either the cost of oil per barrel; the higher the barrels are the higher the cost of fuel will be indicated. The other flip side to this equation is that if the demand falls off of the expected earnings we can also be affected
References: Pump Prices and Oil Prices: A Tale of Two Directions: By: Adilov, Nodir; Samavati, Hedayeh: Atlantic Economic Journal; Mar2009, Vol. 37 Issue 1, p51-64. 14p. ebscohost.com Rising Gasoline Prices 2012: By: Nerurkar, Neelesh; Pirog, Robert: Congressional Research Service: Report. 3/1/2012, p1-1, ebscohost.com