Will the supply curve shift to the right or th left?
Answer quickly please!What will OPEC's increase in the oil supply do to the supply and demand curves?
You'll notice that despite OPEC's promises to increase supply, they simply have no CUSHION left upon which to give.
I read the initial S+D report from US inventories and OPEC and I'm starting to see signs that we have nothing left to give.
Prices will more fluctuate NOW based on the falling dollar, tight supplies, high global demand, and geopolitical tensions in the Middle East.
Just remember: Oil was trading at $20 a barrel when Bush took office. Now we are nearly 5 times that amount in just a short time.What will OPEC's increase in the oil supply do to the supply and demand curves?
When supply increases, demand will decrease. This is the basic law of supply and demand.
when demand increases the demand curve will shift to right and when it decreases it will shift to the left.
With supply:
When the supply increases the supply curve will also shift to the right and when it decreases it will shift to the left.
The price charged can move up or down depending on the quantity that is surplus or in shortage. If there is a shortage, the price could be raised to reach equilibrium and if there is a surplus the price could be dropped to reach equilibrium.
With the oil, the supply has increased, therefore the demand decreases, the price could be dropped to increase demand and equilibrium will be met.
No comments:
Post a Comment