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Academic Term Papers Catalog Problem of High Oil Prices.
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18030. Problem of High Oil Prices.This paper addresses the fact that oil prices have been increasing at a dramatic rate in recent years. Taking an economic perspective on the topic, it is noted that the classic laws of supply and demand are not adequate for explaining the situation. This is basically because oil is a product of low price elasticity. It is a necessity and thus demand does not decline with a rise in prices. In addition, because of supply disruptions, there has not been an increase in supply despite the incentive of higher prices. The paper also considers the roles of OPEC and market investors in inflating oil prices. KEYWORDS: economics supply and demand oil prices oil pricing. MLA Style. 6 pages, 13 footnotes in text, 6 bibliographic sources. |
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