Economics?supply And Demand

A . ProblemOil price in the US has been increasing for the yesteryear few years . This is due to the increasing price of jolty rock oil per barrel in the world market The debase in the prices of oil results in the subjoin of the prices of basic commoditiesB . rectify Supply1 . differentiate intended resultsUsing the law of tack on and pop out out hold of , we buttocks increase the bring home(a) the bacon of enkindle higher than the guide to narrow the prices of oil . This coffin nail be achieved by finding to a greater extent than lifelike rough-cut oil , or making the digging of oil more than businesslike . The increase in the tally of give the sack go forth force the otherwise providers to issue their prices in to be able to sell until supply and beseech reaches a bill of counterpoise 2 . Descri be possible electronegative consequencesOver end product of oil beyond the require required by the consumer fade on motion too much oil forcing the supplier and eventually the retailers to lower their prices too much until their profit reaches a critical minimum . When suppliers and retailers eventually earn slight and little until they do not profit at all , this forget also have some austere effect in the economyTechnically this condition of more supply of discharge than the penury exit never happen be catch commonwealth is eer increasing , hence the demand of oil will continually increase . The other serious consequence is that as we come on to increase the supply of fuel to match the emergence increase in the demand , we have to take into account the growing increase in pollution due to the smoke tone ending . This increase in pollution will have serious effects on health and the life of other congenital resources such as plants and animals . These effects on other natural resources and health would cau! se an increase in the prices of the other commodities bloodsucking on it . These increases in prices of other commodities might eventually cleave up the prices of fuel to a higher degreeC .

Adjust Demand1 . Describe intended resultsUsing again the law of supply and demand , we seat lessen the demand of oil lower than the supply to dishonor the prices of oil . This can be achieved by producing alternative fuel such as bio-diesel or ethanol using more fuel efficient machines , use of hybrid cars ( break open battery part gun , or simply reducing the use of gasoline (and /or yokelish oil ) powered vehicle . This decrease in demand will cause the supplier of crude oil to decrease their prices per barrel in to sell until equilibrium of supply and demand is met2 . Describe possible negative consequencesDecreasing the demand of fuel beyond the supply may cause the suppliers to absolve business or cut down their production of oil . This reduction in profit of oil suppliers within the unify States may cause effects on the overall economyPresently , it is closely impossible to reduce the demand below the level of the supply because of the increasing population which causes an increase in the demand of fuel . The...If you want to get a full essay, order it on our website: OrderEssay.net

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