Oil Soars

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Title: Oil Soars

Essay Details:

Subject: Philosophy

Author: Samuel D

Date: September 10, 2011

Level: University

Grade: B

Length: 2 / 308

Essay text:

It also sheds light on the prices of other commodity futures including Gold and Copper, however our concern here relates only to the prices of crude oil futures. Economic theory in article As we have learned in chapters seven and eight that products that are inelastic help generate increased revenues for its sellers, as the decrease in quantity is not matched with the far larger increase in price. OPEC took advantage of the inelastic demand of crude oil futures using this exact principle. Also, illustrated here is the lack of substitutability of crude oil futures due to their inelasticity. As studied in chapter 8, a leftward shift in the marginal cost curve due to an increase in marginal cost at each quantity produced causes a leftward shift in the supply curve...

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