Assignment:
A major determent of output, inflation and GDP is the price of oil. Conduct some research on the factors that you feel affects both the supply of oil on the world oil market and affect the demand for oil on the world oil market.
- Will OPEC countries increase or decrease their oil output?
- Will economic slowdown in the E.U. increase or reduce demand for the world's supply of oil?
- What about China - will they increase or decrease demand for the world's supply of oil?
- How will these factors shift the demand and supply curves for oil, and how will these shifts affect equilibrium price and quantity in the oil market.