hi, my first thread
might be a silly question, but i cant think of any
what causes demand of oil to increase and decrease?
all help is appreciated
M - G - C - E
- Thread Starter
- 01-12-2010 19:34
- 01-12-2010 19:40
There is no point in us telling you the answer. So I will try to outline how you would approach this type of question. You need to think about where the demand for oil comes from in the first place (in order to say what may increase or decrease it).
So what uses oil? -transport, production (factories), in fact pretty much anything
What can cause the things that demand oil to change its demand for oil? - well you can go into specifics, if public transport gets more expensive while maybe cars get cheaper, more people will take the car and so more petrol is demanded. or you could go broad, aggregate, say that the economy is growing (to say an increase in investment by increased confidence) this means there is more production in the economy, a large part of production uses oil so they demand more oil.
- 01-12-2010 19:59
What causes the demand for apples to increase?
Those wanting to eat apples... those buying apples to make apple pie (cos you need apples for that), those making smoothies with apples in them, people making fruit cocktails.
On a much larger scale: supermarkets who are selling the apples are gonna have to get them from somewhere, Mr Kipling apple pies have apples in them which have to come from somewhere, Innocent Smoothies and Sainsbury's fruit cocktail all require apples too.
So basically if people want more of something which uses apples, the demand of that "something" and the demand for apples is going to rise.
So... what can you make/do with oil, OP?Last edited by Chelle-belle; 01-12-2010 at 20:03.