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Supply and Demand Issues
How do changes in supply and demand effect oil prices? In general, prices of crude oil behave in a similar way to most other commodities that have global demand. There are wide price swings during shortages (artificial or real) or oversupply; large swings in the graphs that show price relationships and dramatic and rather unpredictable pricing seemingly out of control from the consumer. Demand, in particularly is a major factor on supply -- with China and India vying for more and more crude oil because of their growing economies, their demand continues to skew the curve. Similarly, many oil rich nations have exhibited supply issues because of war (Iraq) or political problems (Venezuela). Thus, more demand, lower supply means higher prices.
Part 2 -- Which two countries are the largest consumers of petroleum products? The United States (#1) and China (#2).
Part 3 -- Explain what happens to price and quantity of oil when the following occur:
The Price of SUVs falls -- SUV's are notoriously poor with gas mileage, and expensive. If...
However, the larger SUVs have bigger tanks, so consumers must purchase more gas and get less effective mileage. This will increase the demand for oil, and over time and volume, increase the price of oil.
The government approves more drilling in Alaska -- Just because drilling is approved does not mean great finds or cost effective production ensues. However, let us assume that Alaskan drilling opens up several new fields that are cost-effective and profitable. Supply of oil will increase, particularly non-imported oil, and prices, at least for American consumers, should fall.
Part 4 -- If you consider a product like gasoline, would you favor price controls?
Proposals that tried to control and regulate gas prices and tax manufacturer's profits were popular ideas, particularly during the Carter years in the late 1970s. Actually, the controls were put in place by the Nixon and Ford Administrations as a reaction to…
REFERENCES
How Gas Price Controls Sparked '70s shortages. (May 15, 2006). The Washington Times. Retrieved from: http://www.washingtontimes.com/news/2006/may/15/20060515-122820-6110r/?page=all
Morton, F. (2001). The Problem of Price Controls. Cato Institute. Retrieved from: http://www.cato.org/pubs/regulation/regv24n1/morton.pdf
Rockoff, H. (2007). Price Controls. The Concise Encyclopedia of Economics. Retrieved from: http://www.econlib.org/library/Enc/PriceControls.html
This means that the demand increase will produce an increase in supply at a controlled rate. d. How can you apply what you learned about the concepts of supply and demand from the simulation to your workplace? The simulation sheds particular light on the idea of adjusting pricing structure according to apparent market demand. This is useful to any workplace. In my case, the notion that large-scale external changes in the
Furthermore, it appeared that the consumption of alcoholic beverages among the youth increased throughout the three-year duration of the survey. In terms of the young females (in high school), the drinking path has been described as "an absolute disaster" (Fyfe, 2010). The primary explanation as to why alcopops became even more popular among the youth is given by the inability of the tax to impact the parents -- who in
This dynamic is more than an experience effect or network effect, as it is multiplicative across the many members of the supplier network, in effect creating an entirely new platform for sharing knowledge and information. The reliance on analytics for creating the necessary integration links and platforms for decision making also dominate this phase of maturity in any supply chain network (Wang, Huang, Dismukes, 2004). With the findings that what
Results from the study by Petersen, Ragatz and Monczka show that effective collaborative planning depends on information quality, and the trust level firms share. The authors purport: "Collaborative planning activities between supply chain partners are expected to lead to better performing supply chains" (Petersen, Ragatz & Monczka, Introduction section ¶ 1). In addition, numerous other researchers have also explored the perception relating to supplier alliances, that enhanced collaborative planning
1.3. Summary of argument, Hypothesis The role of leadership styles and their applicability to the success or failure of mergers, acquisitions and alliances is the focus of this research. Any leadership study, to be relevant, must also focus on the needs of those served by the organizations studies. That is why in the proposed Change Management Equilibrium Model have customer-driven processes at their center or core. The focus of the research
economic tools and concepts which can be applied in the contemporary issues and typical, dynamic situations that are existent in today's health care industry. There have been numerous economic changes in the economy of the United States which in turn have come to have an impact and fashioned the current trends in the health care of the nation. These include economic aspects such as the financial recession which have