Long Term Theories and Short Term Factors: Difference between revisions
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==Long Term== | ===Long Term=== | ||
==Multiple Equilibrium== | |||
[[Image:Supply-Demand.jpg|thumb|Description]] | [[Image:Supply-Demand.jpg|thumb|Description]] | ||
Revision as of 01:37, 4 December 2006
Long Term
Multiple Equilibrium
Short Term
Throughout the history of America's oil consumption there have been many events that have affected the price of oil. These events usually have not affected the price in the long run but have often temporarily caused the price of oil to increase.
War and Conflict
- War on Terrorism in Iraq and throughout the world
- Conflict with the Koreas
- Conflict between Israel and Lebanon
- Conflict wit Iran and it's Nuclear weapons
Natural Disasters
- Hurricane Katrina
- Massive Fires throughout the Country
Civil Events
- Labor Strikes
- Elections/What party is in office at the moment
As shown in the above graph the war with Iraq, Hurricane Katrina and conflicts with Venezuela, along with other factors involving OPEC have caused the price of oil to fluctuate. Events such as Hurricane Katrina cause an increase in the price of oil due to a shortage in resources, a lack of transporatation and power outages.
