Economists have given us a mannequin of how costs and portions of products are imagined to work together. (Click to enlarge) Figure 1. From Wikipedia: The worth P of a product is decided by a stability between manufacturing at every worth (provide S) and the wishes of these with buying energy at every worth (demand D). The diagram exhibits a constructive shift in demand from D1 to D2, leading to a rise in worth (P) and amount bought (Q) of the product. Unfortunately, this mannequin is woefully insufficient. It type of works, till it doesn’t. If there’s…
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