Article Analysis
According to an article from the Inter Press Service, gasoline consumption trends have been declining (Larson, 2013). The declined gasoline consumption has an effect on the utility that is derived from the product. There are different reasons for the decrease that include individuals using different means of transportation, use of other fuels, and decreased sales. Although the price of gasoline has risen, and is still rising, the product is still to considerably inelastic. The decline in gasoline consumption has an effect on the utility of the product including the decline of usefulness of the product among consumers, but still needing the product for exports in the United States. Although the product is not as useful for consumers, it is still a need amongst transportation. Many individuals need the gasoline as a way of transportation to work, school, doctor’s appointments etc. Aside from consumers, the product is a need for exports in the United States economy. There have been occurrences that have changed the demand of gasoline among consumers although the supply remained the same. Occurrences that have changed the demand of the product include the decline in car fleet, less driving among individuals, more fuel-efficient cars, the decline in registered vehicles, decline in new car sales, and the number of Americans living in urban areas (Larson, 2013). With less car fleets, there is less fuel to purchase for company transportation, and with more cars being made to be more fuel-efficient, individuals need less gasoline to drive up to 200 miles than with older vehicles. Another factor includes more Americans living in urban areas. With more individuals in urban areas, there are more carpooling, bike sharing, and public transit such as buses, taxis, subways, etc. With more people carpooling or bike sharing, there is less gasoline demand than if