Eco Article Analysis

Article Analysis

March 31, 2014

ECO 365

Janet Hunter

Article Analysis

When searching an article to analyze I decided to research an article that pertained to gasoline, due to the fact that the rising prices has had an effect upon my family because my husband and I both travel a vast amount throughout the work day, along with effecting millions of other Americans. Additionally, according to the article, OP-ED: Falling Gasoline Use Means U.S. Can Just Say NO to New Pipelines and Food-to-Fuel from the Inter Press Service, gasoline consumption trends have been declining (Larson, 2013). Furthermore, the declined gasoline consumption has an effect on the utility that is derived from the product. There are different reasons for the decrease which include individuals using different means of transportation, use of other fuels, and decreased sales. In addition, even though the price of gasoline has risen, and is still rising, the product is still to considerably inelastic.

The decline in gasoline consumption has an effect on the utility of the product including the decline of usefulness of the product among consumers, but still needing the product for exports in the United States. Although the product is not as useful for consumers, it is still a need amongst transportation. Moreover, a vast amount of individuals need gasoline as a way of transportation to important every day destinations such as work, school, doctor’s appointments etc. Along with consumers, the product is a need for exports in the United State’s international market in order to contribute to maintaining a healthy domestic economy..

There have been a variety of occurrences that have changed the demand of gasoline among consumers, although the supply remained the same. Additionally, occurrences that have changed the demand of the product include the decline in car fleet, less driving among individuals, increase in the use of fuel-efficient cars, the...