Article Analysis

NAMECOURSETUTORDATEARTICLE ANALYSISOne of the most dominant economic problem facing the States and the whole world in recent times is the eternal increase of furnish prices globally Fuel as a consumption good is among the most essential commodities that is needed by both producers and final consumers for transportation heating homes among former(a)wise postulate making it a necessary good . The displace commercialize s is sensitive and volatile since given its role in the miserliness its deal is relatively springless while on the other hand supply is br affected by factors that keep back fuel market the most vulnerable market in the world (Perners , n .dThis essay is an article analysis evaluates fuel get hold of trend in an judge to highlight the right of demand and supply , factors that affect demand and supply of fuel and how they influence the fuel market in an attempt to apologize the economic principles that apply in the market economics bear be delineate as the behavioral science concerned with efficient apportioning of scarce resources efficiently to meet unlimited human wants . Economics looks at the best way to share limited resources such as land , capital and labor in an attempt to maximize output and promote growth and development in the economy . There are two main branches viz. microeconomics and macroeconomics . Microeconomics is that part of economics that studies authorized aspects of human behavior by looking at how individual production units and /or a single consumer or abode can efficiently allocate resources to maximize varying objectives such as maximizing dinero for firms and maximizing utility for consumers (Frank Bernanke , 2000The law of demand states that as prices of certain commodity increases its quantity demanded decreases , therefore one factor that affects the demand of fuel is price , the price of fuel has increased dramatically thus affecting demand . However , fuel as a commodity is affected by certain factors that view as the law of demand .

Firstly , one factor that affects demand of fuel is lack of a suitable substitute that can be used as a source of nothing , this makes the utility derived from fuel very high compared to other household commodities thus households are forced to give up other goods to make up for increase in fuel be (Frank Bernanke , 2000According to Dr Tellis as quoted in Perners (n .d , the price elasticity of many mark product is -2 , therefore increase of a commodity by one reduces the quantity demanded by two units , however since flatulence does not have a substitute , its demand is inelastic therefore consumers are forced to adjust their work out by cutting down consumption of other goods thus the telling demand of other commodities goes down . Wal-Mart estimates that the current gas prices in the country have taken 7 per week from the family budget due to the multiplication effect . Therefore , increase in gas prices in general lead to reduced get power of the consumer given that he /she reduces the consumption of other goods and service to provide for the increased expenditure...If you want to get a complete essay, order it on our website: Orderessay

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