Posted by Leo - 20600788
Oil price going crazy...
I am taking “Introduction to Economics” class in the current semester. I like the subject despite all the charts and graphs about the law of supply and demand, which are hard to understand for me.
Why am I mentioning Economics class? Because in the lecture book, in the fourth chapter it talks about Elasticity of demand and gives an example of a real situation, about one Mexican man who is billionaire, he is in the oil business, and he is trying to earn more money and he increase the price of oil barrels to get more profit, he knows that people all over the world and economies need oil for development and even with high oil prices people will still buy it. I think that is what is happening with the oil price nowadays. In the United States, government and agencies are calling oil executives to explain how in the world oil price is reaching record prices above $130 a barrel, and they expressed doubt that basic laws of supply and demand were at work. Instead, the senators think that price increases are a result of a sinister combination of monopolistic acts created by oil-producing countries and corporate greed.As I mentioned before, I am sure that there is a black hand in the background of all this economic situation and inflation, oil companies should be fined and governments should impose law suits against companies using such wicked price policies.
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