Microeconomics Issues of Rising Oil and Gas Prices...

Introduction In this text, I concern myself with the contents of two articles based on recent microeconomics issues. During the last two months, the price of gas in the U.S. has been on an upward trend. Taking into consideration recent happenings on the international scene, this trend could have been triggered by many different factors. The articles I make use of in this case discuss the rising oil and gas prices. Discussion While the first article I concern myself with predicts an increase in gas prices, the second article confirms an increase in the price of oil. From the onset, the first article, titled Increased Gas Prices? Dont Blame Unrest in Egypt, points out to readers that they could soon find themselves digging deeper into their pockets for a gallon of gas. However, even though it acknowledges that the unrest in Egypt could be to blame for the increase in gas price, it warns against apportioning all the blame to the said unrest. The second article, titled Market Watch: Oil Prices Rise on US Economic Outlook, confirms an increase in the price of oil most particularly in the London and New York markets. According to Domm (2013), the author of the first article, apart from the unrest in Egypt, several other factors such as a plunge in the inventories of domestic crude oil could drive up demand and in the end trigger an increase in the price of gas. In the opinion of the author, although the probl ems facing Egypt (and Libya) have affected supplyShow MoreRelatedEssay about Eco 365 Week 1692 Words   |  3 PagesArticle 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 ofRead MoreThe New Business Idea Of Cindy3116 Words   |  13 Pages Project 2 – Microeconomic Analysis Donald Cole ECON545 – Business Economics Date: October 12, 2014 Introduction The new business idea of Cindy is very innovative but being an intelligent businessman Cindy should look for all the broad macroeconomic conditions in the U.S economy where he is planning to begin her contracting business for installing solar panels. Cindy has not only to look for the growth prospects of solar energy equipment which will make use of solar energy to harness and convertRead MoreFluctuating Price of Oil and How It Affects the Global Economy5248 Words   |  21 PagesFluctuating price of oil and how it affect the global economy Abstract: The oil prices have started rising significantly since the initiation of the twenty first century. Theoretically, one can judge the impact of an oil price shock. The immediate effect of the oil price shock is the increased cost of production due to increased fuel cost. This creates an inflationary effect (mainly cost push inflation which is accompanied by a situation of unemployment). Whenever there is an overall inflationRead MoreApplication of Managerial Economics in Decision Making7900 Words   |  32 Pagestheory of demand 13 3.1.1 Tastes 14 3.1.2 Number of buyers 14 3.1.3 Income 14 3.1.5 Expectations 15 3.2 The theory of supply 16 3.3 The theory of production 16 3.4 The theory of price( in government) 17 3.5 The theory of consumer behaviour 17 3.5.1 Rational behaviour 17 3.5.2 Preferences 17 3.5.3 Budget constraint 18 3.5.4 Prices 18 4.0 Managerial Economics and Economic Theories 18 5.0 General overview of the office of the Attorney General 19 6.0 Decision-making centres under the Office of the AttorneyRead MoreEffect of Risk Management in Oil and Gas Industry10589 Words   |  43 PagesABSTRACT Firms that operate in the oil and gas industry experience a number of risks in the supply chain of oil and gas and petrochemical as by products. These risks are inherently inculcated into the supply chain of oil and gas and related products ranging from the exploration, production, and marketing of oil, gas and related products. Quantitative and qualitative research will be conducted into the effects of these risks has revealed a strong relationship between the concepts of risk managementRead MorePrinciples of Microeconomics Fifth Canadian Edition20085 Words   |  81 PagesLicensed to: iChapters User PRINCIPLES OF MICROECONOMICS: A G U I D E D T O U R PART ONE: INTRODUCTION Chapter 1 Chapter 2 Chapter 3 Ten Principles of Economics Thinking Like an Economist Interdependence and the Gains from Trade The study of economics is guided by a few big ideas. Economists view the world as both scientists and policymakers. The theory of comparative advantage explains how people benefit from economic interdependence. PART TWO: SUPPLY AND DEMAND I: HOW MARKETS WORKRead MoreEconomics Text Book Chapter Summaries21497 Words   |  86 Pagesmore goods for less money Assumption: we all want to increase utility = happiness, satisfaction Rational self-interest not same as selfishness, e.g. one reason for donating to charity is because of derived satisfaction Key concept- marginal analysis- comparisons of marginal benefits and marginal costs, e.g.: keep eating until full, that is... until marginal benefit = marginal cost... i.e. not worth it to pay for more food when already full Why study economics? As John Maynard KeynesRead MoreMerger and Acquisition: Current Issues115629 Words   |  463 PagesMergers and Acquisitions Current Issues Edited by Greg N. Gregoriou and Karyn L. Neuhauser MERGERS AND ACQUISITIONS Also edited by Greg N. Gregoriou ADVANCES IN RISK MANAGEMENT ASSET ALLOCATION AND INTERNATIONAL INVESTMENTS DIVERSIFICATION AND PORTFOLIO MANAGEMENT OF MUTUAL FUNDS PERFORMANCE OF MUTUAL FUNDS Mergers and Acquisitions Current Issues Edited by GREG N. GREGORIOU and KARYN L. NEUHAUSER Selection and editorial matter  © Greg N. Gregoriou and Karyn L. NeuhauserRead MoreVarian Solution153645 Words   |  615 Pagescurve constructed from the reservation prices of the consumers rather than the â€Å"smoothed† demand curve that we used in the text. Remember that the reservation price of a consumer is that price where he is just indiï ¬â‚¬erent between renting or not renting the apartment. At any price below the reservation price the consumer will demand one apartment, at any price above the reservation price the consumer will demand zero apartments, and exactly at the reservation price the consumer will be indiï ¬â‚¬erent betweenRead MoreSustainable Supply Chain13609 Words   |  55 PagesThe current issue and full text archive of this journal is available at www.emeraldinsight.com/0960-0035.htm IJPDLM 38,5 A framework of sustainable supply chain management: moving toward new theory Craig R. Carter and Dale S. Rogers University of Nevada, College of Business Administration, Reno, Nevada, USA Abstract Purpose – The authors perform a large-scale literature review and use conceptual theory building to introduce the concept of sustainability to the ï ¬ eld of supply chain management