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Essay

Gas Price Elasticity

Essay specific features

 

Issue:

Business

 

Written by:

Joann B

 

Date added:

May 18, 2012

 

Level:

University

 

Grade:

A

 

No of pages / words:

5 / 1306

 

Was viewed:

2842 times

 

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Essay content:

The price at the pump is higher than the same period last year by 56 cents and has risen 16.2 cents over the past month (Anonymous, 2000). How far will it rise? What will consumers do about the dramatic increases that are occurring with the arrival of each shipment? Price elasticity of demand would indicate that demand will fall as prices continue to rise, which in turn should result in a reduction of prices and a subsequent increase in demand...
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Such may prove to be the case, but the scenario is an unlikely one. Prices have increased all over the country, but price increases in the Midwest have been even more dramatic than in other areas. Across the region, prices are averaging $1.874 for a gallon of unleaded, but that same product is well over $2 a gallon in many of the cities of the Midwest...
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General issues of this essay:
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