Demand Curve

The demand curve is a curve showing whole levels of quantity demanded at different price levels. Any show up on the curve shows the quantity demanded at a precondition price. The law of demand states that if all factors remains the same give birth for price there exit be a variety in the demand curve. If the price of a product or service is increased consequently the demand ordain decrease. When there is shift in the demand curve causing it to kick the bucket either right or left this is due to otherwise factors rather then price such as income or price of related goods. Steepness is determined by gingersnap the steeper the curve is the more inelastic the good is. A shortage is insufficient amount of a product or service in comparison to the demand motiveed by customers. The mainstream model of the market states if there is a shortage , prices will increase due to the fall in supply. As cover is a non renewable and natural resource this al funkys the price of vegetable oil to remain high as there is only a limited amount that can be accessed and is a necessity. just if there is a long-term shortage this can tolerate a dramatic effect on the public, as it will cause a change in lifestyle in the long run. Oil companies operate almost in a monopolistic market, although it is more so a duopolistic market as around 4 companies dominate the industry.

This means competition is low so these companies often charge higher prices to maximise good margins as they know consumers (households/businesses) HAVE to pay these prices as dismiss for electricity, heating, lighting is a necessity good. For example if the price increases dramatically with oil then consumers need to find an alternative salmagundi of channelise such as trains or public transport where it doesnt effect the consumer as dramatically. There are respective(a) influences tht affect the demand of crude oil. Such as income. Income has a huge influence on household consumers as it depends wear they can afford to pay for the oil. Other influences such as... If you want to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper