How do they decide the oil prices in Indonesia?
Date:
7 May 2009 Comments:
1
Jojojojo asked:
I’m doing an essay about the increase of oil prices in Indonesia.
I’m doing an essay about the increase of oil prices in Indonesia.
The teacher said that I must also include how they decided the price for oil. Preferably using a demand/supply graph. But others are fine too.
Can anyone help?
Thanks in advance!!
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One Response to “How do they decide the oil prices in Indonesia?”
May 8th, 2009 at 9:16 pm
are u a j1 student?
well, the increase in oil prices is due to an increase in dd for oil and a reduce in ss for oil. u know the reasons right?
this can be illustrated by an rightward shift of the dd curve and a leftward shift in the ss curve.
u may oso want to state that the dd and ss for oil is price inelastic as oil is an essential source of fuel needed for industrialisation and is also a non renewable source of energy
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