Many Reasons for Rising Gas Prices
There are many different reasons why gas prices are rising so rapidly and it often depends on who one asks this particular question of. Many economic analysts share different views about the rise of gas prices and the media has also spent a great deal of time covering this issue. There is something about rising gas prices on the news, in the papers, and on the Internet almost constantly and it is difficult for Americans to avoid the issue or stop being reminded of it when they read or watch television, or when they get on their computers to look at the news of the day. It is also difficult for Americans to forget about this issue every time they drive their cars or pull up to the gas station because every mile they drive reminds them that they are spending more money than they used to be to make the trip to work, drive the kids to school, and countless other things. Every time they fuel their cars they are reminded that gas prices are still on the rise. One of the strangest issues about gas prices is that, even though they are rising rapidly, the variance of how much gasoline costs per gallon on any given day across the country is fascinating. For example, gasoline may be $2.01 per gallon in Florida while the same gallon o
Another reason that gas prices are rising so rapidly is simply demand. The idea of supply and demand controls much of the issue with rising gas prices (DeWeese, 2005). More individuals are driving, the population of America is getting larger, minimum wage has been raised in many states, and there are many other issues going on with the economy that affects how much Americans are willing to spend and what they are willing to do. Because the demand for gasoline is high, the prices go up (DeWeese, 2005). If no one was purchasing gasoline then the stations would have to lower their prices in order to entice individuals to buy gasoline. However, there are so many people that are purchasing gasoline now that many of the stations are aware of the fact that they can raise their prices to whatever they want them to be as long as they stay reasonably in line with other stations in the area, and they will still have plenty of customers lining up to buy their gasoline. When the company that makes these products asks for more money for them, the store that purchases these products has three choices. The store can not buy the products anymore, the store can absorb the extra amount of cost and make slightly less profit on that item, or the store can raise the prices (Burrows, 2004). Most stores, like most manufacturers, do not like making less profit. Most stores also understand that the goods that are shipped to their stores on a regular basis come for a reason - namely, customers want them. That rules out the first two suggestions and leaves only the third - the company must charge more. Consumers are finding that, not only are they paying more at the gasoline pumps, but the rising gas prices are causing them to pay more in almost every other aspect of their lives as well. This has a huge effect on the economy, and especially on areas of the economy that deal with individuals who live paycheck to paycheck already and do not know where they will get any extra money to fight the rising cost of the gasoline prices in this country. Gasoline comes in tanker trucks to the stations, and this is no secret to most people. One of the main problems with the fact that gasoline keeps rising is that it costs more for the tanker truck bringing the gasoline to the stations to drive to the stations (Kirms, 2005). Part of the reason that th
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Approximate Word count = 1580
Approximate Pages = 6 (250 words per page double spaced)
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