Rising and Falling of Gasoline Prices
Since the American economy is dependent upon transportation — and transportation, including the personal need to have automobiles, depends on fossil fuel / gasoline — a great deal of attention is paid to the cost of gasoline to the business and the consumer. In times when gasoline prices spike to previously unheard of levels — taking money out of the hands of consumers that they would normally use to purchase important goods and services their families need — a great deal of discussion (including loud protests) is set in motion as to why the price of gasoline is so unpredictable and in many cases so unfair. This paper raises questions about the rise and fall of gasoline and presents answers from the literature without editorial comment. This paper also explains that there are global dynamics that impact gasoline prices, it explains why gasoline prices can change consumer behaviors regarding their grocery shopping habits, and it explains the link between gasoline prices and obesity.
Why do gas prices rise and fall so dramatically?
An article in the peer-reviewed publication, the Energy Journal (Kilian, 2010, p. 87) points out that important components to the complete understanding of why gasoline prices move up and down sometimes quickly have been ignored and hence are misunderstood by the public. First of all, there are solid reasons as to why gasoline prices can rise so quickly; these explanations have nothing to do with the cost of producing crude oil in Saudi Arabia or in the United States. When there is a refinery fire, a change in the “regulatory environment,” or there are electrical outages caused by hurricanes or other natural disasters, refinery production can be shut down, which raise gasoline prices (Kilian, 88).
The author refers to the fact that when it comes to crude oil “â€¦each demand and supply shock” has a “distinct dynamic” effect on both the price of crude oil and the price of gasoline (88). In 80% of the instances of gasoline price fluctuations worldwide “refining shocks” are the cause; and the other 20% of instances where gasoline prices increase dramatically is due to “oil-market specific demand shocks” (Kilian, 89). In the U.S. specifically, 54% of the “variation in the real price of gasoline” is caused by “demand shocks” in the crude oil markets. But what does that really mean?
When there is a reduction in global demand for crude oil, gasoline prices drop in the United States; and when there is a strong, urgent global demand for crude oil, and the oil-producing countries cannot meet the demand, prices of gasoline at the pump go up, sometimes to outrageously high prices (Kilian, 92).
What do gasoline prices have to do with grocery shopping?
There are good reasons why consumers should know not just why gasoline prices go higher but also they should know how family budgets can make adjustments to those higher gasoline prices. A peer-reviewed research piece in the Journal of Marketing (Ma, et al., 2011, p. 18) explains what happens at the grocery story when consumers have to pay sky-high prices for gasoline. For example, it is obvious that high gasoline prices reduce disposable income for families and hence those families — if they are smart and savvy — adjust their spending in carefully crafted ways. When gasoline prices are low, as they were in July 2003, families spend an average of 4.6% of their median incomes on gasoline; but when prices spike, as they did in July 2008, households spend more like 11.5% on gasoline (Ma, 18).
So what can consumers do vis-a-vis shopping for groceries when gasoline prices take away significant portions of their disposable incomes? Firstly, on page 21 Ma explains that smart shoppers go to warehouse club centers and “supercenters” where prices are lower due to the mass volumes of products sold there. Yes, Ma admits, supercenters and warehouse clubs may be further away than local grocery stories, causing more gasoline to be used; but on the other hand, customers buy in bulk at those outlets, reducing “the number of shopping trips” necessary (21). Secondly, smart grocery shoppers turn to “private labels” on food products that are as a rule 20% to 30% less than national brand labels (Ma, 21).
Will higher gasoline prices have a positive impact on America’s rising obesity rate?
While Americans are being more selective about where they shop for groceries — due to the higher cost of gasoline — the higher prices may as well lead them to be more attentive to their own health as well. The author of an article in the scholarly journal, Economic Inquiry suggests that higher gasoline prices could cause people to walk more often (rather than driving) and could lead to a “â€¦reduction in the frequency with which people eat at restaurants” (Courtemanche, 2011, p. 935).
Courtemanche offers three ways in which the rise in gasoline prices can affect body weight: a) with less money to spend, individuals may take public transportation, walk, or ride a bike to their place of employment; b) because driving is so expensive, people may choose to “prepare their own meals at home, which tend to be healthier” than food served in restaurants; and c) “â€¦higher gas prices may impact eating habits more generally, either through income effects or increases in food prices” (Courtemanche, 939). A recent Australian study that Courtemanche references shows that “â€¦people who drove to work were more likely to be obese than others” (939).
In conclusion, given the history of the fluctuation of gasoline prices, one can fully expect that even though they are down right now, they will rise back up. It is important for the consumer to understand the relationship between global crude oil supply and demand and the cost at the pumps in the United States. It also seems appropriate for the consumer (in times of high gasoline prices) to be aware of ways to save money at the grocery store, and to use that period of time as a way to get healthier by walking and eating at home.
Courtemanche, Charles. “A Silver Lining? The Connection Between Gasoline Prices and Obesity.” Economic Inquiry, 49.3 (2011): 935-957.
Kilian, Lutz. “Explaining Fluctuations in Gasoline Prices: A Joint Model of the Global Crude Oil
Market and the U.S. Retail Gasoline Market.” The Energy Journal, 31.2 (2010): 87-111.
Ma, Yu, Ailawadi, Kusum L., Fauri, Dinesh K., and Grewal, Dhruv. “An Empirical Investigation
of the Impact of Gasoline Prices on Grocery Shopping Behavior.” Journal of Marketing,
75.2 (2011): 18-35.
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!