The Mystery Behind Gasoline Prices Analytical Essay by Nicky

The Mystery Behind Gasoline Prices
An exploration of the reasons behind the fluctuation in gas prices, citing the findings of an article by Scott Horsley.
# 145511 | 1,252 words | 1 source | APA | 2010 | US
Published on Nov 13, 2010 in Economics (Econometrics) , Economics (Inflation) , Economics (National)


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Description:

This paper examines the phenomenon of gas price fluctuation, citing the findings of an article written by Scott Horsley in the spring of 2006. The paper explains that Horsley's article examined the economic and political circumstances behind the rising gas prices, and stated that gas prices are one of the most complex supply and demand relationships in the market. The paper notes that, according to Horsley, the biggest factors in rising costs are the costs of crude oil and the cost of refining. The paper asserts that high gasoline prices can have a devastating impact on other areas of the market, as consumers must channel more of their income into transportation; this creates an imbalance where the gasoline market outpaces other areas of the economy. The paper concludes that the government must take action to protect the nation's economy.

Outline:
Summary
Government Interaction and Gasoline Prices
Exploring Alternatives
References

From the Paper:

"Oil prices are not set by the oil companies; they are set by the global market. Global demand has increased as countries like India and China become wealthier and more dependent on gasoline. When combined with already high US usage, the demand continues to rise on a global basis. Production is controlled in OPEC countries so that the price can be artificially controlled through regulating supply in comparison to demand. Prices are maintained at artificially high levels, much higher than they would be in a competitive market. Prices are maintained as high as possible, but not so high as to encourage the development of alternatives (Horsley, 2006)."

Sample of Sources Used:

  • Horsley, S. (2006). Q & A: What's Behind High Gas Prices? NPR. Business. 27 April 2006. Retrieved 15 February 2009 from http://www.npr.org/templates/story/story.php?storyId=5365439

Cite this Analytical Essay:

APA Format

The Mystery Behind Gasoline Prices (2010, November 13) Retrieved September 22, 2019, from https://www.academon.com/analytical-essay/the-mystery-behind-gasoline-prices-145511/

MLA Format

"The Mystery Behind Gasoline Prices" 13 November 2010. Web. 22 September. 2019. <https://www.academon.com/analytical-essay/the-mystery-behind-gasoline-prices-145511/>

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