Price Elasticity of Demand for Gasoline

One could think of a number of ways that someone could cut back on fuel consumption in response to higher prices. For example, people can carpool when going to work or school, go to the supermarket and the post office in one trip instead of two, and so on. In this discussion, the factor being debated is the price elasticity of demand for gasoline. Price elasticity of demand for gas refers to the hypothetical situation if gas prices rise, what will happen to the quantity demanded for gasoline? To answer this question, lets delve into a brief overview of 2 meta-analyses of studies of the price elasticity of gasoline. Studies on Gasoline Price Elasticity   There are many studies that researched and determined what the price elasticity of demand for gasoline is. One such study is a  meta-analysis by Molly Espey, published in  Energy Journal,  which explains the variation in elasticity estimates of gasoline demand in the United States. In the study, Espey examined 101 different studies and found that in the short-run (defined as 1 year or less), the average price-elasticity of demand for gasoline is -0.26. That is, a 10% hike in the price of gasoline lowers quantity demanded by 2.6%. In the long-run (defined as longer than 1 year), the price elasticity of demand is -0.58. Meaning, a 10% hike in gasoline causes quantity demanded to decline by 5.8% in the long run. Review of Income and Price Elasticities in the Demand for Road Traffic Another terrific meta-analysis was conducted by Phil Goodwin, Joyce Dargay and Mark Hanly and given the title Review of Income and Price Elasticities in the Demand for Road Traffic. In it, they summarize their findings on the price elasticity of demand for gasoline. If the real price of fuel goes, and stays, up by 10%, the result is a dynamic process of adjustment such that the following 4 scenarios occur. First, the volume of traffic will go down by roundly 1% within about a year, building up to a reduction of about 3% in the longer run (about 5 years or so). Second, the volume of fuel consumed will go down by about 2.5% within a year, building up to a reduction of over 6% in the longer run. Third, the reason why fuel consumed goes down by more than the volume of traffic, is probably because price increases trigger more efficient use of fuel (by a combination of technical improvements to vehicles, more fuel conserving driving styles, and driving in easier traffic conditions). So further consequences of the same price increase include the following 2 scenarios. The efficiency of use of fuel going up by about 1.5% within a year, and around 4% in the longer run. Also, the total number of vehicles owned goes down by less than 1% in the short run, and 2.5% in the longer run. Standard Deviation Its important to note that the realized elasticities depend on factors such as the timeframe and locations that the study covers. Taking the second study, for example, the realized drop in quantity demanded in the short run from a 10% rise in fuel costs may be greater or lower than 2.5%. While the short-run the price elasticity of demand is -0.25, there is a standard deviation of 0.15, while the long rise price elasticity of -0.64 has a standard deviation of -0.44. Concluded Effect of Rise in Gas Prices While one cannot say with absolute certainty what the magnitude rise in gas taxes will have on quantity demanded, it can be reasonably assured that a rise in gas taxes, all else being equal, will cause consumption to decrease.

Malthus Principle Of Population Growth - 1585 Words

According to Malthus, Economic Growth leads directly to population growth, and the latter tends to be more rapid than the former. Malthus’ principle appears to have held for the pre-industrial world for millennia. However, the industrialising capitalist countries of Europe experienced low population growth rates during the 20th Century, in spite of their high economic growth rates. Why did Malthus’ principle fail to apply in this case? Thomas Robert Malthus (1766-1834) was a famous Economist, famous for his work on population growth, including â€Å"An Essay of the Principle of Population.† This principle explained Malthus’ views, that population growth would offset any increases in technological advances and therefore economic growth would equal zero. Consequently, due to the different rates of population growth and the growth of the food supply, Malthus believed that the food supply would not have to ability to facilitate the entire population. It is believed that this principle has held for the pre-industrial world, from the beginning of the human race until the 18th century, this period is also known as the Era of Stagnation or the Malthusian Era. However history has indicated that after the 18th century some countries begun to industrialise and experienced positive growth rates and low population growth rates, thus affecting Malthus’ principle. To effectively analyse why Malthus’ pr inciple failed to apply after the 18th century it is important to specifically look at howShow MoreRelatedOpositions to Thomas Malthus Theory on Population Growth 694 Words   |  3 PagesThomas Malthus was an early 19th century English scholar who specializes in political economy and demographics. One of his most well-known and influential works ‘An Essay on the Principle of Population argued that the increase in population growth would ultimately create social and economic problems for a nation. 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(Port, 2006) Thomas Robert Malthus was born on February 13th, 1766, at Dorking, a town south of London. His theory about population was that population growth usually exceeds the amount of foodRead MoreThe Between Science, Policy And Sustainability1103 Words   |  5 Pages1 Introduction The notion that there are limits to growth is not new to science. The debate that exponential population growth and economic growth, coupled with natural resources depletion, cannot be sustained has started already a few centuries ago with a ground-breaking publication: â€Å"Essay on the principle of population† Thomas Malthus in 1798. With more scientific knowledge developed around this debate, a reverse strategy was formed on the international political agenda called Sustainable Development

The Innocence of Childhood in The Catcher in the Rye by...

Growing up and becoming mature can be an intimidating experience; it is difficult to let go of one’s childhood and embrace the adult world. For some people, this transition from youthfulness to maturity can be much more difficult than for others. These people often try to hold on to their childhood as long as they can. Unfortunately, life is not so simple. One cannot spend their entire life running from the responsibilities and hardships of adulthood because they will eventually have to accept the fact that they have a role in society that they must fulfill as a responsible, mature individual. The novel â€Å"The Catcher in the Rye† by J.D. Salinger follows the endeavours of Holden Caulfield, a sixteen-year-old teenage boy who faces a point in†¦show more content†¦Holden knows that these children are unaware of the stress and difficulties that come along with adulthood, and believes that they should be saved from these things. Holden’s fear of growing up is shown even here, as he stands right on the edge of the cliff saving these children, but is unwilling to fall off the cliff and enter adulthood himself. This, being one of the most important and memorable quotes of the book, is perhaps the most significant evidence of the fact that the title of the book explores the theme of innocence preservation. Therefore, Holden’s affection for the innocence and purity of children undoubtedly has a connection to his reluctance to grow up, and to his desire to become a â€Å"catcher in the rye†. Moreover, his attitude towards change is also a large factor in his attempts to resist maturity. Holden is very hostile towards the idea of change. He is bothered by the fact that things are always changing, and he constantly tries his best to avoid change so he can stay in his own ideal world. His attempts to prevent change show that he wants to preserve his innocence. One way in which Holden tries to divert away from his transition and avoid change is by visiting the museum, where â€Å"everything always stayed right where it was. Nobody’d move†¦ Nobody’d be different. The only thing that would be different would be you.† (Salinger 121).Show MoreRelatedChildhood Innocence is Everything in Catcher in the Rye by J.D. Salinger770 Words   |  4 PagesEveryone’s mother always told them that childhood innocence is the best thing in the world, but for Holden it is the world. When reading The Catcher in the Rye some people disdain Holden, because they think he’s cynical and immature, but really he is a representation of us all. Unlike other bo oks, the protagonist isn’t someone you want to be friends with, it’s someone you realize you are. The Catcher in the Rye by J.D. Salinger is Holden’s chronicle of running away from his boarding school and livingRead MoreCatcher in the Rye vs Frankenstein Novel Study Essay1304 Words   |  6 PagesIndependent Novel Study In today’s world, innocence cannot be preserved forever. As humans age, they lose their innocence due to the corruption that exists in society. This is demonstrated in the two novels, Catcher in the Rye and Frankenstein. The two authors, J.D. Salinger and Mary Shelley prove this statement through their use of various literary devices. Key characters in both novels- Holden and the creature- learn through personal experiences that innocence cannot, in fact, be preserved foreverRead More The Catcher and the Rye / Huckleberry Finn Essay1251 Words   |  6 PagesAmerican Webster’s dictionary defines innocence as, â€Å"Freedom from harmfulness; inoffensiveness.† Although this definition is the one which is most commonly used, many authors tend to twist or stretch the meaning in order to fit the material to which it applies. For example, the way J.D Salinger applies innocence to his work is quite different from the way Mark Twain uses innocence. Innocence also change s accordingly with the time period. The definition of innocence is dynamic with respect to author andRead MoreThe Catcher Of The Rye By F. Salinger1386 Words   |  6 PagesAs a â€Å"gateway drug for a generation of teenagers,† Jerome David Salinger’s novel, The Catcher in the Rye, is a world-renowned phenomenon (Teicholz). 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The catcher in the Rye can be described in Holden’s perspective as a person, almost like a hero that helps childrenRead MoreTheme Of Symbolism In Catcher In The Rye1080 Words   |  5 Pages10 Hour 2 6 December 2017 The Catcher in the Rye: Prompt 3 In the novel, Catcher in the Rye, by J.D. Salinger uses a variety of symbols to support the thematic idea that maturation and the loss of innocence are an inescapable rite of passage for all of humanity. Three significant symbols that signify the importance of alteration and losing one’s purity to become more suited to live in the real world are the ducks in the lagoon of Central Park, the â€Å"Catcher in the Rye†, and the carousel and the goldRead MoreCatcher and the Rye Essay1382 Words   |  6 Pagesexciting novel The Catcher in the Rye by J.D. Salinger expresses the free will of choice. Salinger cleverly conveys how decisions can alter a person’s perspective of their peer. Holden Caulfield, the protagonist, is a young teenager who has emotional instability and behavioral concerns. Holden acts immaturely extensively throughout the book. Holden invents a world where adulthood is the emblem of superficiality and â€Å"phoniness†, while he chooses to co nvey childhood as a world of innocence. Holden’s observationRead MoreHow Salinger’s Holden Caulfield Relates to Teenagers Throughout Time1412 Words   |  6 PagesSalinger’s Holden Caulfield Relates to Teenagers Throughout Time In 1951, J.D. Salinger’s The Catcher in the Rye was #1 on the New York Time’s bestseller list. Since then, the American Literary Association claims The Catcher in the Rye is a â€Å"favorite of censors.† The use of harsh language and profanity has been a long time debate of educators causing the novel to be pulled off bookshelves and propelling J.D. Salinger and his protagonist, Holden Caulfield, into reluctant fame. The translationRead MoreThe Themes of The Catcher in the Rye840 Words   |  3 PagesConsidered one of the best novels of the 20th century, The Catcher in the Rye has affected readers around the globe since its publication in 1951. Its contemporary critics, however, gave the novel mixed reviews. Compared to the ideals of 1950s America, Holden Caulfield, the emotionally immature, extremely judgmental, teen-aged main character of â€Å"Catcher,† embodies the antithesis. Holden was an affront to the new social order, which demanded conf ormity and propagated the â€Å"father knows best† mentalityRead More Catcher in the Rye Essay: Holden - The Misfit Hero2101 Words   |  9 PagesThe Misfit Hero of The Catcher In The Rye      Ã‚     The Catcher In The Rye by J.D. Salinger was published in 1951. A recurring theme in J.D. Salingers stories concerns people who dont fit in with the traditional American Culture. Salingers misfit heroes, unlike the rest of society, are caught in the struggle between a superficial world and a conscious morality (1 Wildermuth). In his attempt to create a new and realistic portrayal of the times, Salinger first, effectively creates Holden Caulfield

Financial Planning free essay sample

To inform the audience about how small sacrifices today can result in huge dividends in retirement. Thesis: Today I will inform the audience of the power of saving small amounts of money for the future and how compound interest works in their favor when they start saving as soon as possible. Organizational Pattern: Topical Introduction A. Attention Getter Who wants to be a millionaire? You can be!!! Social Security will very likely NOT be available to people currently younger than 40 and if it does survive will not be a significant amount to live on. How we prepare NOW can determine whether we are world travelers or Walmart greeters. C. Credibility My father impressed upon me the need for financial planning. I began saving when I first started working at 17 and have benefitted greatly. D. Thesis Today I will show how anyone can have a rewarding future by making small and often unnoticed sacrifices currently. We will write a custom essay sample on Financial Planning or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page E. Preview Specifically, I will discuss retirement saving strategies including 401K matching programs from employees and IRA’s. Transition First I will discuss the expediency of saving at an early age. I. Body A. When to start saving for retirement? 1. The earlier the better. Due to the exponential nature of compound interest the longer the money remains the more significant the growth 2. It’s never too late to start saving for retirement. The problem is the longer you wait the more impact on your budget due to having to save a higher percentage of your current income. If you start saving early your impact is minimized greatly. Transition Next, I will discuss the various ways to save for retirement. 1. 401K plans offer you the chance to deduct monies from your paycheck either before taxes are deducted or afterward. Each option has tax 2. advantages but their impact is geared toward current tax savings or tax savings during retirement. The real opportunity in 401K is the employee match program where your employer invests the same amount into your account, usually up to a certain percentage. . Individual Retirement Accounts (IRAs) are another way to save for retirement. They can be used independently or in conjunction with a 401K plan. Funds are deposited after taxes have been withheld so there is no tax due upon withdrawal in retirement. IRA contributions can be withdrawn without penalty if you face a financial hardship such as losing your home or significant medical bills. Transition My final point is a strategy that can meet your goal while minimizing impact on your current lifestyle. 1. Many of you are working toward new careers and excited about that first REAL paycheck. 2. If you â€Å"forget† about the percentage of your check that is going into the 401K and structure your budget on the remaining amount you will find saving easy and rewarding. 3. Begin with 3% of your pay going into retirement savings. Each raise/promotion you get increase it by 1% until you have reached your employer’s maximum match rate. Then add the 1% into an IRA until you have reached the percentage that results in your desired retirement account. I have discussed when to start saving for retirement, various ways to save as well as methods for minimizing the impact on your current budget. B. I trust that now you are more informed about the rewards available in the future when you start saving now and have obtained information about ways to achieve your goals. References Ira online resource guide.