With China, India and other developing nations demanding greater need for oil, at some point, we will not have enough oil for everyone…what’s our alternatives than?
Based on the laws of supply and demand it never will. Because as supply decreases price will increase, and when price increases, demand decreases. So as supply decreases, consumption (demand) decreases. It might sound confusing (and it can be), but the supply and demand curve is an intergral part of macroeconomics.
It is hard to explain in just words, go to http://www.netmba.com/econ/micro/supply-demand/ for a better explaination with an example of a supply and demand curve.
November 4th, 2009 at 10:07 am
Tuesday, at 17:34 GMT
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November 4th, 2009 at 10:24 am
I think now. The OPEC controls everything. If they want price rises, they cut production.
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November 4th, 2009 at 10:46 am
Based on the laws of supply and demand it never will. Because as supply decreases price will increase, and when price increases, demand decreases. So as supply decreases, consumption (demand) decreases. It might sound confusing (and it can be), but the supply and demand curve is an intergral part of macroeconomics.
It is hard to explain in just words, go to http://www.netmba.com/econ/micro/supply-demand/ for a better explaination with an example of a supply and demand curve.
References :