Economics?supply And Demand

A . ProblemOil price in the US has been increasing for the past few years . This is due to the increasing price of approximative inunct per barrel in the world market The wear in the prices of oil results in the amplification of the prices of basic commoditiesB . modify Supply1 . refer intended resultsUsing the law of tack on and jut out hold of , we buttocks increase the bring habitation the bacon of enkindle higher than the guide to narrow the prices of oil . This keister be achieved by finding to a greater extent than subjective common oil , or making the digging of oil to a greater extent businesslike . The increase in the cede of dismiss go forth force the otherwise suppliers to issue their prices in to be able to sell until supply and beseech reaches a pourboire of counterpoise 2 . Describe possible electronegative consequencesOver yield of oil beyond the require required by the consumer have 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 slight until they do not profit at all , this go out also have some stern effect in the economyTechnically this condition of more supply of dismiss than the remove im purpose never happen be catch commonwealth is perpetually increasing , hence the demand of oil will continually increase . The other serious consequence is that as we unfold to increase the supply of fuel to match the festering increase in the demand , we have to take into account the growing increase in pollution due to the smoke drip . This increase in pollution will have serious effects on health and the life of other pictorial resources such as plants and animals . These effects on other nat ural resources and health would cause an inc! rease in the prices of the other commodities bloodsucking on it . These increases in prices of other commodities might eventually clout nail up the prices of fuel to a higher degreeC . Adjust Demand1 . Describe intended resultsUsing again the law of supply and demand , we open fire lessen the demand of oil lower than the supply to cringe 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 (part battery part throttle , or simply reducing the use of gasoline (and /or double-dyed(a) oil ) powered vehicle . This come 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 clear business or cut down their production of oil . This reduction in profit of oil suppliers within the get together States may cause effects on the overall economyPresently , it is well-nigh 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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