the service station level as well. If a retailer prices its gasoline too high‚ and without regard to competition‚ the retailer ’s customers may take their business to another station with lower prices. If a retailer loses enough volume‚ the retailer may then reduce prices in order to retain its customers. Competition among retail outlets thus affects pricing. You may notice that sometimes there are price differences between two gasoline stations on a busy street corner and between those outlets and
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Case study 3 United States - Standards for Reformulated and Conventional Gasoline INTRODUCTION On 23 January 1995‚ the United States received a request from Venezuela to hold consultations under Article XXII:1 of the General Agreement on Tariffs and Trade 1994 ("General Agreement")‚ Article 14.1 of the Agreement on Technical Barriers to Trade ("TBT Agreement") and Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes ("DSU")‚ on the rule issued by the
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contribute to rising gasoline prices. The major cause for increasing gasoline prices has to do with refining capacity. Even if oil were inexpensive‚ we would still have a problem converting it into the gas that fuels our economy. That is what keeps the gas prices high. When gas supplies are short‚ due to an “inability to refine crude oil into gas efficiently‚” prices increase. This is a component of supply and demand economics. In a positive aspect‚ rising gasoline prices do serve a purpose;
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Fluctuating Gas price Gasoline has become an essential part of life‚ something in which many of us have become dependent on. The price of gas is closely watched by the millions of consumers‚ and with the fluctuating prices it has many of us feeling drained‚ and always asking a common question; why do gas prices rise and fall? There are several factors that cause gas prices to fluctuate. One factor being the price of crude oil itself. Crude oil is used in the production of gasoline‚ so it ’s an essential
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Changes of Gasoline Retail Prices from 1999-2008 Economics James Bork Chris DeShaney October 11‚ 2010 Over the period of 1980 to 2010 the prices of gasoline have fluctuated a lot from lows to highs. There were some drastic prices increases from 1999 to 2008 changing from one dollar to four dollars. After 2008 the prices suddenly fell off drastically but never have returned to what they were in 1999. The main cause for the rise and fall of prices over the years can be attributed to the supply
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diesel fuel‚ gasoline‚ fruit‚ gold‚ and silver. Commodity markets also have time lags. The long-term effect on demand is usually higher than short-term effect; however‚ the difference in elasticity will be higher on the supply side of the market (Karlsson‚ 2008). In this paper‚ the discussion is about gasoline as the primary commodity‚ its shifts in supply‚ demand and how these shifts influence price‚ quantity‚ and market equilibrium. The paper will also determine whether gasoline is a necessary
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Gasoline powered vehicles are better! No‚ hybrids are better! Have you heard these two points-of-view? This last election‚ the question of energy was a part of both party’s platforms. They talked about wind and solar versus coal and oil‚ and gasoline versus hybrid vehicles. So here we are‚ the election is over‚ but the battle between a gasoline powered vehicles versus a hybrid continues. You might know someone who owns a hybrid car. My uncle bought one in 2006 and for him it works great‚ but
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An electric car is powered by an electric motor instead of a gasoline engine. The electric motor gets energy from a controller‚ which regulates the amount of power transmitted throughout the vehicle‚ based on the driver’s use of an accelerator pedal. The electric motors give electric cars instant torque‚ creating a strong and smooth acceleration pattern. Electric cars are about three times more efficient than cars with an internal combustion engine. A pure-battery electric car uses energy stored
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Price plays a very important role in gasoline among other things. Even though the price of gasoline is not at its all time high‚ it is still high to most people. However‚ I do not think it should be as high as it is when the income of the consumers is not going up with the price of it. The demand for gasoline drives the price of it up. In the future there is going to be a demand for the electronic cars‚ and the price of gasoline is surely going to drop. Theories of supply and demand had their
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examine the inelastic demand of gasoline‚ the elastic demand of clothing‚ and the purchases that I make in my life that are most elastic and inelastic. Gasoline would be considered a need and not a product that is just a want‚ this is what makes it inelastic. Regardless‚ the price of gasoline and the quantity demanded is always about the same (Gasoline‚ 2017). Usually when there is a price increase in gasoline it is to bring supply and demand into balance (Gasoline‚ 2017). One of the main reasons
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