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In the current year, 2011, we have seen many mass uprisings in the oil-producing Arab world, including a civil war in Libya that is still taking place. This causes some disruption of oil exports, and some concern about the possible effect on future oil supplies. Even if there is no actual oil shortage, nervousness about oil supplies is enough to drive up prices. Or for the more cynical explanation, greedy oil companies will use any excuse to gouge the public.
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Which is most consistent with the law of demand?
An increase in the price of heating oil causes a decrease in the quantity of heating oil demanded.
Did the price of a barrel of oil quadruple between 1971 and 1980?
It was actually much more than that. In 1971, the price of a barrel of oil was $3.60. By 1980, the price had skyrocketed to $37.24 per barrel; an increase of 934%
Why is it not possible to conclude that OPEC total revenue would increase if it were to cut its production does the elasticity of non- supply have any influence on how the price of crude oil changes?
OPEC acts like a monopoly on crude oil. They can cut production and decrease the supply of oil, thus raising the price, but this does not necessarily increase revenue. As the price increases, the demand decreases. The percentage change in quantity demanded in response to a one percent change in price, while holding all other factors constant, is called price elasticity of demand. If the price elasticity of demand is high, then the demand will decrease significantly as the prices increase, and revenue may not increase.
Does the price of oil affect the price of petrol?
Yes, petrol prices will move slightly to reflect the oil price, although in the UK the the oil cost is a very small part of the price per litre, tax and fuel duty makes up the majority of the cost. Also as petrol if produced through fractal distillation (separation of crude oil) the price of petrol is most likely to increase slightly through the price of oil.
Provide an example of an economic good whose producer would increase the quantity supplied if the price were to go up?
Oil, is an example of an economic good whose producer would increase the quantity supplied if price were to go up. The oil producing nations (o.p.e.c.) can control how much oil is supplied to the international market, and benefits by keeping the supply low, but when the price goes up due to demand going up, then they can increase the supply at the high price. (yahoo answers has this as an answer and it fits)
Does oil spills helps to increase the oil price?
Yes it does affect the oil price
What is opposite of 0.25 cents oil price increase?
The opposite of a 0.25 cent oil increase is a 0.25 cent oil decrease.
What is the price of the dodge challenger?
$22,545 base price with no options. The 2011 has a $1600 price increase.
The price of an oil is rs 30per barrel and price elasticity -0.5 an oil reduces the quantity avilable 20 percent use arc elasticity formula to caluculate percentage increase in the price oil?
the price of an oil is Rs 30 per barrel and price elasticity -0.5 an oil embargo reduces the quantity available by 20% use arc elasticity formula to caluculate percentage of increase in the price oil?
How would high oil prices cause inflation?
oil in general is used i production of goods and services.. oil as in petrol oil can be used in manufacturing products and if oil price is high, cost of production would be on the increase so this will result in the increase in the price of that product.
What are the possible effects of oil price increase?
poor people can't drive cars!
Which is most consistent with the law of demand?
An increase in the price of heating oil causes a decrease in the quantity of heating oil demanded.
How can the president lower prices on oil?
By allowing oil companies to drill for oil the President with the consent of congress can increase the supply of oil, thereby decreasing the price of oil and gasoline.
Did the price of a barrel of oil quadruple between 1971 and 1980?
It was actually much more than that. In 1971, the price of a barrel of oil was $3.60. By 1980, the price had skyrocketed to $37.24 per barrel; an increase of 934%
Is oil costly?
Yes, very. Because of the tedious process and shipment it causes the price to increase.
Why is it not possible to conclude that OPEC total revenue would increase if it were to cut its production does the elasticity of non- supply have any influence on how the price of crude oil changes?
OPEC acts like a monopoly on crude oil. They can cut production and decrease the supply of oil, thus raising the price, but this does not necessarily increase revenue. As the price increases, the demand decreases. The percentage change in quantity demanded in response to a one percent change in price, while holding all other factors constant, is called price elasticity of demand. If the price elasticity of demand is high, then the demand will decrease significantly as the prices increase, and revenue may not increase.
What happen to meg price when crude oil price increase?
she fainted and died......i acually dont know,...but...a nice spirit would answer in this fashion
