Project Part 1 -Gm545 Essay

1261 Words Dec 8th, 2011 6 Pages
Exercise Part I
The microeconomic issue that I chose to discuss is “Everyone’s Gasoline Problem”. I will be discussing this topic as a consumer as well as a business economics’ student on why I feel the prices of gasoline has been fluctuating in recent history. This is a very important topic because it affects a lot of people during the current economic times. The price of gas affects food costs, utility costs, and how much it cost for consumers to get from point A to point B whether it’s by car, airplane, or bus. There are many factors that play a part in gas prices –I will be focusing on are supply and demand due to economic issues and the supply of oil. One factor that affects gasoline prices are economic issues. Our
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Some gas stations were even charged with price gouging because they knew people would still purchase the gas. In conclusion as consumers we all are affected by gasoline prices. While we do not stop by gasoline it usually affects other areas in our lives such as shorter vacations, spending less on eating out, and many more things.
Chapter 8, Question 11 The internet is a great resource for doing research on products, shopping for products, and etcetera. With that said, do I feel that the internet has created more competition? Absolutely, many companies offer great discounts from purchasing products online rather than going into the store. Let’s not forget that while shopping over the internet we are saving time, gas, and wear and tear on our vehicles. Since businesses and firms are so competitive during these economic times and have to become creative to keep business going (profits up) they use internet deals as a way to make economic profits. “When a firm earns zero economic profits, it is generating enough income to keep investor capital in the business. When they typical firm in an industry is earning normal profits, there are no pressures for firms to enter or leave the industry.”
Websites such as Groupon, Scoutmob, and LivingSocial are just a few websites that companies have teamed up with to offer discounts. Consumers see the discounts and purchase them at the discounted prices. Businesses offer these deals with hopes that

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