Heating Commodities
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Title: Heating Commodities

Essay Details:

Subject: Business
Author: Gordon K
Date: June 21, 2015
Level: University
Grade: A
Length: 2 / 552

Essay text:

The demand for energy was becoming greater and greater because it was that time of year when consumers began storing energy in their homes to prepare for the cold winter months ahead. The four commodities mentioned in this article, crude oil, heating oil, gasoline and natural gas are all substitutes for one another. This is true because the cross elasticity of demand states that as the percentage change in the quantity demanded of one commodity results from a one percent change in the price of another commodity. In other words, the increase in demand for crude oil, gasoline, and heating oil was the outcome of the price increase in natural gas...

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