Buy custom High Pump Prices: Oil Demand and Supply Factors
Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
3 / 666 |
Essay's paper body
Tax is increased due to a decrease in supply.
As you can see in the graph below , when supply decreased, the slope, moved to the left
increasing the prices.
When oil production goes down, gas companies get nervous. The sheer threat of oil reductions and future prediction of price can raise gas prices...
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Elasticity also increases with the time horizon. The immediate affect of high prices has not changed the demand; people are still buying the gas at a high price because they need to for their everyday requirement, however with time people will find gas efficient cars that would lower the demand of gas...
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