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Gas price increase in Miami-Dade County have become completely out of line with what residents of Miami-Dade are willing to pay or, what residents of Miami-Dade can afford to pay. It has become a burden to human individuals. There is a world-wide dilemma as to who is getting rich on the increased rates for gas, while the poor working person struggles to heat his/her home on the meager salaries provided. Somewhere lays an answer for this global predicament we have gotten into.
(Borenstein, 354-69) Fuel and gasoline prices have fluctuated up and down in all towns, cities, and states across the nation.
In fact, the entire world is seeing some fluctuation on their fuel costs. Supply and demand generates great increase in Miami-Dade County in costs, due to the general need of the resource: residents of Miami-Dade driving automobiles back and forth from work, performing daily mundane chores, heating their homes, or, as simple as taking an airplane trip to visit someone.
“Gasoline price movements are a direct result of the daily, voluntary choices made by buyers and sellers of gasoline in response to market supply and demand conditions. ” (Borenstein, 354-69)
Generally we are affected by changes in our environment in many different ways. Residents of Miami-Dade reactions to those almost any change will vary. With the increased technology we have become accustom to products which provide us with convince, and often feel they are necessary for us to maintain existence. Sudden changes in supply and demand and pricing could lead us to analyze our need for a particular product or service, and consider using alternative methods.
The alarming increase in gas prices at the pump is a challenge that is prevalent in most households today. (Mohanty, 355- 66)
There is a definite need or demand for gas; consumers tend to rely heavily on personal and public transportation which create a need for gasoline. This need generate a demand for that particular product. Residents of Miami-Dade want a lot of things; they demand less than they want, because they are not always able to afford what they want, demand means a willingness and ability to pay. No matter how high the gas prices have go the demand for gasoline the demand fluctuate very little because residents of Miami-Dade adjust their behaviors, but ultimately we still need gasoline.
The demand for gasoline has risen due to the number of SUV’s and larger vehicles requiring more gas. Commuters that commute a long distance to work also contribute to the demand for gasoline. Personal travel that has increased due to reasonably price tickets offer by the airlines. Higher price at the pump generally decrease the demand for a particular product. When the price rises and the demand decrease, usually the supply then increase in Miami-Dade County. These are all factor that can’t constitute a change in both supply and demand. (Neumark, 657-80)
Recently in Miami-Dade County you can notice a record number of raise in the gas prices nationally, while crude oil prices are and strong petroleum demand. Prices at the pump could continue to rise as residents of Miami-Dade take summer vacation and refinery switch to producing heating oil for the winter. Summer time normally means increased travel personal travel and business travel, which stimulated an increased in the demand for gasoline and increase in prices. A change in the behavior of the consumer in find alternate means of transportation, such as bikes.
The consumer could purchase solar power vehicles. Residents of Miami-Dade could change their life style to where they only work in place where they could walk to work. This would decrease the demand and force the price down. Because the Miami-Dade County’s public generally values their luxuries, the possible of gas price decreasing due to consumption in rare. Even though we are reluctant to change our human behaviors we do love bargains. The rise gas prices and the hunt for cheaper gas prompted the media to publish locations where you can find cheaper gasoline.
By logging on to www. msn. com and selecting my car from the tool bar, you can enter your zip code and it will give you location in your area that you can find the lowest reported gas. As technology has made it possible for you to locate anything at your finger tips, you can locate the best price for gas in a particular area. We often tend to change the way we do things and change our route before we would give up the luxury of driving our personal automobiles. (Karrenbrock, 19-29)
The price of gasoline is determined by those individuals that are not remotely caring for those individuals that pump gas into their vehicle’s gas tanks initially. Unfortunately, it ends up affecting the pocketbook of all because the competition is trickled down to the consumer from the gasoline station owner so he/she can make a living for his/her family as well. The price of gasoline will continue to increase unless society changes its mind to be more fuel conscience. Discoveries of new natural resources are needed to continue supplying fuel.
New technology needs to become available to increase the supply of crude oil for the increasing demand for gasoline. (Borenstein, 354-69) The price of gasoline has been creeping up over a period of time, which is forcing individuals to make choices in relationship to money spent on gasoline to money spent on essential necessities of daily living. The choices that these individuals make will impact how they will allocate their financial funds to provide for food, clothing, housing, utilities, retirement, and recreational activities.
These decisions will elicit various feelings of uneasiness among these individuals because of the unknown in being able to afford gasoline for their vehicles to drive to work, errands, school, and extra curricular activities with the family. Wages earned by individuals have not stayed in line with the increased cost of living. The price of gasoline is one contributing factor to this increased cost of living. This cost of gasoline in proportion to the wages earned by individuals is much higher than it has been in the past.
This economy-induced situation has forced individuals to become more creative in saving money for the essentials of life along with affording gasoline for their vehicles. (Neumark, 657-80) In conclusion this economy revolves around the changes in supply and demand. The Miami-Dade County’s economy depends heavily on the fact that Miami-Dade residents want what they want. In general Miami-Dade residents will even work harder to drive larger cars which consume more fuel. The relationship between supply and demand tends to counteract each other. As one factor go up the other go down.
A there are a few instance when they cross and balance each other. The study of economics and supply and demand can help is to understand money supply and make wise business choice that can have a positive effect in trying or inflationary times. (Mohanty, 355- 66) The subject of increasing gas prices is on everyone’s mind these days especially when gas prices are not decreasing as fast as everyone had hoped. Gas prices are dependent on many factors. One of those factors is the concept of supply and demand. Residents of Miami-Dade of today are more mobile than ever before.
We live miles away from work, school, shopping, and recreational activities. With this comes the increased demand for gasoline, which has lead to a decrease in supply of gasoline to fill those demands. (Karrenbrock, 19-29)
Works Cited Karrenbrock, Jeffrey D. “The Behavior of Retail Gasoline Prices: Symmetric or Not? ” Federal Reserve Bank of St. Louis Review, July/August, (2007), 19-29. Mohanty, Samarendu, E. Peterson, R Wesley, and Nancy Cottrell Kruse “Price Asymmetry in the International Wheat Market,” Canadian Journal of Agricultural Economics 4.
3 (November): (2008), 355- 66. Neumark, David, and Steven A. Sharpe. “Market Structure and the Nature of Price Rigidty: Evidence from the Market for Consumer Deposits,” Quarterly Journal of Economics 107: (2007), 657-80. Shin, David (2007), “Do Product Prices Respond Symmetrically to Changes in Crude Oil Prices,” American Petroleum Institute Research. Pp: 65-68 Borenstein, Severin. “Selling Costs and Switching Costs: Explaining Retail Gasoline Margins,” Rand Journal of Economics 22 (2007): 354-69.
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