variables that could affect the price of oil
variables that could affect the price of oil: Discussion QuestionExamine the following variables that could affect the price of oil: a) Tax credits were offered for expenditures on home insulation.
b. The Alaskan pipeline was completed.
c. A supposed ceiling on the price of oil was removed.
d. A new, very large deposit of oil was discovered.
e. Buyers in large numbers all of the sudden started driving large sport utility vehicles.
f. The use of nuclear power suddenly decreased.
Choose any two of the above variables, and describe how your selections would affect oil prices based on the supply and demand analysis.
This is not an essay, this is a class discussion. All cited sources and references must in APA format
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Vehicles and oil are complementary products in that they have to be sued together. When buyers start driving large sport vehicles, it means they will also need to purchase more oil. The demand for one of the products increases the demand for the other (Wei, Zhao, and Li, 2013). The purchase would therefore increase the demand for oil. When the demand for oil increases the quantity supplied will increase. This will increase the prices of oil. When the buyers for the sport vehicles decrease, the demand will decrease the prices of oil…
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