Supply and Demand and Price Elasticity

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Supply and Demand and Price Elasticity The very basis for economic stability is supply and demand. Variations in supply and demand influence a society’s excellence. As supply and demand increases and decreases, so does the cost and amounts of commodities. These variations in volume and price affect market stability. Factors that help influence the market equilibrium are substitutions. Supply is the capacity and readiness to trade and manufacture certain volumes of a commodity at an alternative cost and at a given time frame. Demand is the capability and compliance to buy certain amounts of certain merchandise at alternative costs in an agreed period. We provide means to all various markets that are looking for jobs. Then, we propose our labor to trade for income. After that, we require commodities when we are out shopping for our needs in the markets. Then, we present money as payment for something from the markets. Identify causes for shifts in Supply and Demand for Petroleum There are many different causes for shifts in supply and demand for petroleum. We have Natural Disasters, Civil Unrest and Consumers Demand to name a few. When an oil refinery slows down production this will certainly drive up the cost of gasoline because the supply has been limited, but the demand for the product remains the same. OPEC regulates number of barrels of oil that are produced daily. An increase in production means a decrease in prices. Civil Unrest in the Middle East, where most of the petroleum is imported is a major factor in the rising cost at the pump, as it is evident today. When there is unrest among the crude produces countries the affect is felt around the globe. The pain is not just only felt at the pump. The price rises to heat our homes. The asphalt to repair our roads is increased. The prices of goods that are truck in increase due to the increased price

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