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consider this simple proof: price is a function of supply and demand. oil prices are low because demand for oil is low oil is an input into nearly every aspe
by grandalf 11y ago
consider this simple proof:
price is a function of supply and demand.
oil prices are low because demand for oil is low
oil is an input into nearly every aspect of the economy
thus low demand for oil could imply low demand for goods for which oil is an input (it could also reveal some kind of major efficiency improvement or the presence of some substitute for oil (or an increase in the supply of oil).
- ZanyProgrammer 11y agoOr oil prices are low because the supply of oil has increased.
- ajmurmann 11y agoYeah, I thought it was pretty established that even before sanctions against Iran had been lifted production already had gone up especially in the US through fracking.
- tosseraccount 11y agoFalse assumption in a proof?
- grandalf 11y agothat could also be the case. Or the increase could be a combination of changes in supply and changes in demand.