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Business
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| Number of pages / Number of words: |
5 / 1134 |
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Oil does not take up a large portion of people's incomes. This also adds to the demand of oil being inelastic as it doesn't affect an individual's monetary situation because it does not have as much of a noticeable change to their other expenditures. People are not likely to care too much about the declining supply of oil as increasing in the price of oil have been enough to effect their wallets...
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As prices continue to increase, however, the more a good will take up a larger portion of consumer's incomes and will gradually become more elastic. It is becoming more evident in every day life, that as the price of oil rises people are taking more notice to how much petrol and energy they consume and are taking steps to reduce their use...
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