businesschapter1 - Andrew Sobler 29th August 2007 Intro to...

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Andrew Sobler 29 th August 2007 Intro to Business, Section 02 Prof. Gary Guidetti Ch. 1 Questions 1) The factors of production in the petroleum industry were the demand in the U.S. continuing to rise, the increased popularity of SUVs and their omnipresence today along with other large vehicles. Other factors would include be other products, such as plastics, that require petroleum as a raw material. In addition to the increasing demand internationally, that means the supply of domestic oil fields are running low. I think in the future, the factors will remain pretty much the same, but to a much lesser degree, as the world turns to alternative energy sources such as hydrogen to power its cars and other products. 2) The concept of supply and demand is basically the willingness of buyers to purchase a good or service. How this affects the market prices of petroleum is that since domestic oil fields are continuing to be depleted, also some oil fields overseas in the Middle East were burned and are therefore also being depleted. Since all that is happening, the sellers don’t have as much of it to offer, therefore
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businesschapter1 - Andrew Sobler 29th August 2007 Intro to...

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