The up and down
changes in the prices of oil will drastically affect the entire economy along
with one's family as the oil's importance in the production of every good and
service that is produced, a change in this will affect everyone in society. Such
an impact on society would cause a lot of other products and services to
decrease in use.
If the prices of
oil were to drop relatively low, then the use of products and services that
utilize oil would tremendously rise in numbers. However if the prices of oil
were to skyrocket, such products and services that operates on oil would
decrease extremely fast.
Cars, the
vehicles that transports us everywhere we go, ranging from getting to school
and driving around for vacation. In the case of the prices of oil rising, less
and less would drive in cars and resort to bicycling or taking the bus. Thus,
the demand for automobiles will significantly drop and hurting the producers of
cars, a big part of the current economy.
Conversely, the
prices of oil were to drop, oil would be purchased more than ever and cars used
more often as well.
Another example
would include factories. All factories operate on oil and energy to produce the
everyday products we use. If the prices of oil were to frequently fluctuate, producers’
willingness would change and either produces less when the quantity demand is
higher resulting in a shortage or produce more then the quantity demanded,
resulting in a surplus.
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