(Robert, pp1-3)With the evolution technology, mapping changes at the whim of unconventional gas discoveries leading to a reassessment of reserves from 60 to 250% depending on the area. (Ammann, pp16-38) This year, United States became the first producers downgrading Russia, which nevertheless remains the leader in terms of exports
Little-used energy source until the oil shocks, natural gas was of interest lower compared to other fossil fuel: difficult to transport, less energy as coal, dangerous to handle, heavy investment and it was often hard flared. (Marriot, pp33-48) Its operation is recent, its reserves, still poorly understood, are already abundant
Russia still retains a strategic in the geopolitics of natural gas reserves and due to its geographical position, but perhaps for a shorter period than expected. (Viscusi et al
In general, the government interferes in the labor market not for economic reasons but for social reasons. Thus, while raw economics points to having no minimum wage as a good policy, because the minimum wage is a market distortion (Doyle, 2006)
¶ … 22nd of April 2014 in the Wall Street Journal, it is reported that the prices for oil futures are showing a significant decline (Friedman, 2014)
Inelastic products tend to be essential goods which are needed, regardless of their price, for example power utilities, as well as goods associated with addiction, such as tobacco (Baye, 2007). Oil is classified as an inelastic product, as it is an essential product for many industries, and the demand remains the same even if the price increases, likewise, the demand will also remain similar even if the price decreases (Kilian, 2009)
Of course, it makes sense if thousands of people are writing or calling or emailing their representative about gas. But, knee jerk reactions only cause excessive amounts of product to be available at certain times, and very few products during other times (Morton, 2001)
This system prevents the pricing system from rationing the available supply, making the true price of gasoline during the 1973 and 1979 shortages, far higher that it would have been if the price had not been controlled. When there were shortages during the war years, product quality decreased, and it is also possible that the quality of the refined gas would do the same if price controls were instituted (Rockoff, 2008)
Supply Supply is the amount of a product that will be available to customers (Mankiw). The factors affecting supply include the price of the good, the price of related goods, technology, expectations, price of inputs, and government policies and regulations (Colander 90)
He argues that, "If Coke and Pepsi got together and agreed to hike prices, they would be prosecuted. But with milk, raising prices is government policy," (Edwards)
There is equilibrium between demanded and supplied gas. The proof of this can be found in the fact that there are not very long lines at gas stations, and there is not a gasoline shortage (Evers)
This theory is based on the belief that a surplus in good will lead to price cuts and a shortage in goods will lead to price increases. This natural ebb and flow will lead to a balanced market, in the estimation of the economists who hold this theory (Faulkner)
Sellers have expectations concerning the future of the market condition and how it will affect their product. If a supplier expects the demand for the product to increase, the supplier can quickly increase the rate of production to meet the new demand with enough of a supply (Goodwin)
2. Supply Supply is the amount of a product that will be available to customers (Mankiw)
The prices of these things affect the supply of the good, but these prices can be affected by technology. If a technological advance takes place which somehow makes it easier to produce the good, then that will also affect the supply of the good (Samuelson & Nordhaus)
Sellers determine supply and buyers determine demand. Demand is defined as the desire to own something, the ability to pay for it, and the willingness to pay for it (Sullivan)
The rent controls laws for the NYC allowed people to protest against the rising of rents. This expanded the NYC creating a program of rent stabilization for the cover of apartments (Norcross, 2013)
Supply and Demand Curve: Shifts and Movements Demand is, in basic terms, that quantity of a certain product/good that consumers are able and willing to buy/purchase at the prevailing price (Hirschey, 2008)
When it comes to supply, the term according to Hirschey refers to the quantity of a product that sellers are able and willing to bring to the market, under the prevailing economic conditions (Hirschey, 2008). A supply curve, therefore, is an expression of the relation between the quantity supplied and the price charged, ceteris paribus (Taylor & Weerapana, 2011)
A shift of the demand curve essentially takes place or comes about when the quantity demanded of a product changes as a result of changes in factors other than its price (Hirschey, 2008). Shifts in the demand curve could be caused by changes in consumer incomes, population, consumer tastes and preferences, the prices of substitutes and complements, and future price expectations (Wessels, 2006)