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Oil Prices.

17584. Oil Prices.

This paper analyzes how oil prices are related to the law of supply and demand. While the law of supply and demand says that higher prices will decrease demand for a particular commodity and create an incentive for producers to increase their supplies, these rules have not applied to oil prices in the 2000s. Notable in 2005 was the fact that despite high oil prices, demand remained strong. The concluding section explores the possibilities/difficulties in developing alternative fuels. KEYWORDS: oil prices oil supply demand alternative fuel. MLA Style. 7 pages, 21 footnotes, 6 bibliographic sources. 1,667 words.

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