Transportation Economics

Comparative Analysis on Oil SupplySupply is the quantity of practiseds that producers atomic number 18 willing to shop at a attached expense , while expect is the amount of goods consumers are willing to cloud and have the capacity to buy at a given(p) expenditure ( Supply and demandWith the definitions given , it can be inferred that the render worm has an increasing slope , which means that as the damage of the good increases , the quantity that producers are willing to sell increases as well . On the other hand , the demand curve has a decreasing slope as the price of good decreases , the more goods the consumers are willing to buy . The sweepion of these deuce curves is the counterbalance pointWith the scenario that we have , it is assumed that the two offices have the corresponding demand for oil thus the demand curve of both neighborhoods is the very(prenominal) . The turn in curve will be distinguishable for each orbit due to the fact that the Southwest region has a rich give of oil while , on the other hand , the backup man of the country is not so rich in terms of oil products For the oil-rich Southwest region , the supply curve will be less sop up because the quantity of oil is already abundant , no weigh whether the price increases or not .

Whereas for the rest of the country , supply curve is steeper because there is not enough supplyThe polar characteristics of the curves for the two regions will give us different equilibrium points . The less steep supply curve will intersect with the demand curve at a lower price point than that of the steeper curveTherefore , the rest of the country , with the steeper supply curve , will have a much higher(prenominal) price in oil since the oil suppliers will be willing to produce more oil for this region given a higher price . The Southwest region emphatically has more advantage in terms of oil products compared to the rest of the country since there is abundance in oil . And with the same demand for oil in both regions , the Southwest region will definitely have more oil to sell in the market even for a lower priceWorks CitedSupply and demand . Wikipedia . 15 March 2006PAGEPAGE 2COMPARATIVE ANALYSIS ON OIL render Page...If you want to get a full essay, order it on our website: Ordercustompaper.com

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