Week 1 Eco 365

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Oil

ECO/365 - Principles of Microeconomics

Oil
In today’s economy many trends in consumption patterns can determine where the supply and demands are needed. In the article “East Bay Oil Exports Have Become Huge Business,” by Glantz (2012), it touches on the subject of trends and consumption of oil. Many people are aware; however forget that there is a whole lot of oil around us that can be used. This paper will discuss and address the utilities derived, the change that demand for the product or service of market and equilibrium prices, what has occurred to change the demand and supply of the oil, and is demand for oil product or service price elastic or inelastic. According to Glantz (2012), the utilities derived from the article have to do with the way the community consumes the oil that is being used. When the gas prices are up there is a necessity for the oil or fuel and it will most likely cause the prices to go down. In contrast, when the prices of the oil go down, there will be more of a demand and a possible shortage of oil because the demand would have been great. According to Glantz (2012), the increased of oil export from the East Bay was linked to the economic changes and the way individuals are consuming in the United States. Also, in the West Coast they also saw the same increase in demand for oils as the demand for domestic used was lowered. For example: higher gas prices, manufactures vehicle that are fuel efficient and fewer individuals commuting to and from work have all contributed to the changes in the demand for such oils consumption. Additionally, the economy and individuals losing their job also changed the demand because they no longer needed to commute to work. Therefore, the demand for oils was no longer needed causing the prices of the gasoline to increase. * According to Colander (2010), the market and equilibrium changes that have occurred to the supply (oil) by assuming that the demand stayed the same. It revealed...
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