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Economics: Consumption trend for gasoline (Essay Sample)

Research the and select a recent news article concerning trends in consumption patterns of a specific product, such as gasoline, oil, grain, or coffee. The following article, located in the Electronic Reserve Readings on the student website, is an example of trends in consumption patterns. Do not use the article to complete this non-graded activity: Hauser, C. (2011, August 24). Sales of new homes fell again in July. The New York Times. p. 6. Retrieved from EBSCOhost. Write a paper in which you do the following: Analyze the basis for the trends in consumption patterns, as discussed in the article you selected. - Consider the utility derived from a product or service mentioned in the article. - Describe what has occurred to change the demand for the product or service and its market and equilibrium prices. Assume that supply remains the same. - Describe what has occurred to change the supply of the product or service and its market and equilibrium prices. Assume that demand remains the same. - In your opinion, is demand for this product or service price elastic or inelastic? What does this imply about how consumers respond to changes in the price of this product or service? Support your determination of the price elasticity of demand with a reference. Format your paper consistent with APA guidelines. source..

Consumption trend for gasoline
There has been a downward trend towards gasoline consumption in America especially in the automotive industry. In essence, the oil consumption of America has fallen over the years, but this trend is characterized by gasoline which accounts for approximately two- thirds of oil consumption (Clayton, 2012). In addition, Americans now prefer fuel economy in cars resulting in less oil importation by 31 % in 2012 from the year 2005 and more domestic production. However, consumption of less gasoline does not translate to more savings as the prices of oil have risen over time (Clayton, 2012). Consumers mostly derive utility from gasoline through the use of vehicles. The changes in prices of gasoline also affect the demand of other goods, which shows that consumers mainly derive satisfaction from use of gasoline.
The change in the demand of gasoline has fallen in the last decade as more people prefer fuel energy efficient cars. However, the rise in prices over this period has had a profound impact on gasoline consumption than other factors. Americans pay higher prices for gasoline than ever be...
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