Gas Prices-PP1-GM545[1] - Head,Natalie GM545Businesss...

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1 Head, Natalie GM545-Businesss  Economics, Fall Term  2010 [email protected] m [.]
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2 Gas Prices The economy is at an all time low, and we are seeing more people losing their jobs, and  grateful to just have a job.  Gas prices have been fluctuating for some time now.  In doing my  research I found that there are many factors that determine the price of gasoline some of them  are the following: the cost of crude oil, refining cost, taxes, and distribution of cost. (Shipp, 2008)  The cost of crude oil on has risen about 33 percent in the last year. This is because of  supply  issues in such places as Nigeria, Iraq and the Gulf of Mexico, as well as the threat of supply  problems in Iran. (Horsley, 2011) Supply and demand places a big part in how gas prices are determined.   Demand grew strong  for gas in 2007, and  the price of gas rose significantly. By the same token, when demand fell  during  an oversupply of product in the market in early 2008, there was a downward spiral on  gas prices.  Why is this you might ask?  Changes in Demand happens when one of the  determinants of demand, (tastes, preferences, income, prices of related goods, number of 
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This note was uploaded on 03/26/2011 for the course BUSINESS E GM586 taught by Professor Professor during the Spring '11 term at Keller Graduate School of Management.

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Gas Prices-PP1-GM545[1] - Head,Natalie GM545Businesss...

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