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Title: How oil price affect world economy
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Business |
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May 23, 2005 |
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5 / 1222 |
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Essay text:
Supply and Demand Analysis
2.2.1 Oil Supply Analysis
Supply refers to both the ability to sell and the willingness to sell by the producer. Actually, many factors can determine the quantity and individual supplies?Xinput prices, technology, expectations... Showed first 250 characters
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It requires additional refining capacity, of which there is a shortage. It will cost the producers large amount on the facilities to convert crude petroleum to petrol. The input price and extra capacity will lead to a higher cost of production and shift the supply curve left, meaning that supply same level of product, the price of the oil will be higher... Showed next 250 characters
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