Supply, Demand, and Price Elasticity Paper

Supply, Demand, and Price Elasticity Paper 2010 Learning Team A University of Phoenix 10/17/2010 Petroleum is a necessity for the majority of humans across the homo. Petroleum is a natural mental imagery that has few competitors. In recent decades alternative energy sources have been investigated, but the engross of crude oil is still ahead of the game as the worlds primary energy source in the wasting disease of automobiles, but petroleum is overly the main ingredient in plastic. We use plastic everywhere, the structure of our cars, furniture, computers, toys, and the list is endless. Petroleum is also an ingredient in many fertilizers, used in clothing, and rug backing. To sympathise the shifts of supply and demand of petroleum we must understand the cost and effort of retrieving petroleum from under the Earths surface. Oil wells be drilled as lately as six miles into the Earth to search for petroleum. The cost of these rock oil wells is well into the millions of dollars. When a drilling site has been dry out research needs to be done to chance a new site and this is an expensive venture.

The leading producers of petroleum are Saudi Arabia, Russia, and the United States; because 80% of this natural resource is found in the Middle East they have the majority of the control on the price of petroleum and being at war with the Middle East raises the price that Americans pay at the pump. In two hundred1, in the state of California, just before 9/11 the cost per gallon of gas was $0.89. Today we are seeing prices over $3 a gallon. This is an increase of 200% since we went to war. Petroleum is a fossil fuel that is a non-reusable resource. Once, the fossil fuel is gone there will be no more. We also see an increase at the gas pumps during the summertime and holidays. Oil companies realize that more traveling will chance during these times and demand runs mettlesome. When demand for a product is high then the price will rise as well, shrewd that the public has little choice, but pay because it... If you want to tucker out a full essay, order it on our website: Orderessay

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