What are factors that might explain why oil prices are high

Reference no: EM13234961

Oil Prices: Demand and Supply

Case Readings:

Anderson, R and J. Buol (2005). "What is Driving Oil Prices." The Regional Economist. The Federal Reserve Bank of St. Louis. Retrieved on February 17, 2011

Using the case assignment readings, answer the following questions in 4-5 page essay.

1. What are three factors that might explain why oil prices are high?

2. Which two countries are the largest consumers of petroleum products?

3. Explain what happens to price and quantity of oil when the following events occur:

a. The rising popularity of hybrid vehicles.

b. Political conflict in the Middle East.

For each event, you must specify how it effects either demand, quantity demanded, supply, or quantity demanded. It is also important to demonstrate how the change will affect the market demand or supply curve. Also, be sure to state any assumption you are making regarding the relationship of the event and oil.

Reference no: EM13234961

Questions Cloud

What is the deming cycle : What is the Deming Cycle? Explain the activities that make up each step.

What are the key features of iredell-statesvill schools : What are the key features of Iredell-statesvill Schools that support continuous improvement?

What is the speed of the object after 8.0 s : An object is thrown upward with a speed of 14 m/s on the surface of planet X where the acceleration due to gravity is 3.5 m/s2

What are best buy co company structure and control sytems : What are best buy Co company structure and control sytems and how they match its strategy.

What are factors that might explain why oil prices are high : For each event, you must specify how it effects either demand, quantity demanded, supply, or quantity demanded. It is also important to demonstrate how the change will affect the market demand or supply curve.

Use an attractive template and large font : Your presentation should be suitable for a classroom presentation. Be sure to use an attractive template and large font that can be seen from the back of a large classroom.

What is the velocity v of the smaller fish before lunch : A 7.89-kg fish swimming 4.23 m/s swallows an absent-minded 5.16-kg fish swimming toward it at a velocity that brings both fish to a halt immediately after lunch

Write detailed set instructions, in english calculate doller : write a detailed set of instructions, in english, to calculate the dollar amount of money

Identify buyers and sellers as well as the goods or services : Choose a market for a good in your area that seems to be a perfectly competitive market. Identify the buyers and sellers as well as the goods or services. How closely do real world conditions match the characteristics listed in the model

User Account

All Pages