Scribd Logo
Upload

Welcome to Scribd!

  • 16 views

    Discuss How The Non-Price Determinants of Supply and Demand Can Affect The Price of Gasoline

    Uploaded by

    Asma Ali
    The document discusses how non-price determinants of supply and demand, such as branding, market size, demographics, seasonality, available income, complementary goods, and future expectations can affect the price of gasoline. These factors can change the quantity of gasoline demanded irrespective of price. For example, if family income decreases, they may drive less and demand less gasoline, decreasing the price. An externality is an impact on a third party from production or consumption. A example of an externality related to gasoline is the rise of electric cars decreasing demand and price for gasoline as more consumers switch to electric vehicles like Tesla.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Discuss How The Non-Price Determinants of Supply and Demand Can Affect The Price of Gasoline

    Uploaded by

    Asma Ali
    16 views3 pages
    The document discusses how non-price determinants of supply and demand, such as branding, market size, demographics, seasonality, available income, complementary goods, and future expectations can affect the price of gasoline. These factors can change the quantity of gasoline demanded irrespective of price. For example, if family income decreases, they may drive less and demand less gasoline, decreasing the price. An externality is an impact on a third party from production or consumption. A example of an externality related to gasoline is the rise of electric cars decreasing demand and price for gasoline as more consumers switch to electric vehicles like Tesla.

    Original Description:

    Technical Test

    Original Title

    task2

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses how non-price determinants of supply and demand, such as branding, market size, demographics, seasonality, available income, complementary goods, and future expectations can affect the price of gasoline. These factors can change the quantity of gasoline demanded irrespective of price. For example, if family income decreases, they may drive less and demand less gasoline, decreasing the price. An externality is an impact on a third party from production or consumption. A example of an externality related to gasoline is the rise of electric cars decreasing demand and price for gasoline as more consumers switch to electric vehicles like Tesla.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    16 views3 pages

    Discuss How The Non-Price Determinants of Supply and Demand Can Affect The Price of Gasoline

    Uploaded by

    Asma Ali
    The document discusses how non-price determinants of supply and demand, such as branding, market size, demographics, seasonality, available income, complementary goods, and future expectations can affect the price of gasoline. These factors can change the quantity of gasoline demanded irrespective of price. For example, if family income decreases, they may drive less and demand less gasoline, decreasing the price. An externality is an impact on a third party from production or consumption. A example of an externality related to gasoline is the rise of electric cars decreasing demand and price for gasoline as more consumers switch to electric vehicles like Tesla.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Discuss how the non-price determinants of Supply and Demand can affect the Price of

    Gasoline.

    The non-price determinants of supply and demand include Branding, Market size,

    Demographics, Seasonality, Available income, Complementary goods, and Future expectations.

    These non-price determinants are essential and plays important role in affecting the price of

    gasoline. The reason behind this is their ability to change the number of units sold of products

    and services, irrespective of their prices[ CITATION Ste202 \l 1033 ]. If the number of buyers

    increases the demand for products increases. If the number of buyers decreases the demand for

    products decreases. In the same way, if the demand for gasoline in the market increases the price

    of gasoline also increases.

    The non-price determinant factor of available income is an example of the above

    situation. If the income of families decreases they will not be able to afford cars or gasoline for

    routine purposes. They choose to travel through public transport or busses, this will decrease the

    gasoline demand and will also impact its price.

    In economics, what is the definition of an externality? Can you provide an example

    of an externality related to gasoline?

    An externality is a situation that occurs when the production or consumption of a good

    causes an impact on a third party. These conditions occur when a huge amount of market is

    attracted towards something new or any substitute product the price of the old product

    automatically decreases. This externality for the old product would be negative and for the new

    one, it would be positive. This impact can be positive and negative. Gasoline is a fossil fuel that
    is made from crude oil and other petroleum liquids. These liquid petroleum’s are used in

    vehicles.

    For example, this is a modern era every individual is obsessed with technology and

    advancement. Elon Musk is one of the powerful entrepreneurs and businessmen who is the

    owner of Tesla electric cars. If individuals start replacing their cars with electric cars of tesla it

    would decrease the price of gasoline to a huge extent. This externality would be positive for the

    Tesla electric car owner Elon Musk and negative for the regular car owners or gasoline.
    References

    Bragg, S. (2020, December 23, ). Non-price determinants of demand definition. Retrieved from

    https://www.accountingtools.com/articles/what-are-the-non-price-determinants-of-

    demand.html

    You might also like