Supply & Demand

Economics is the study of how human beings their wants and desires, given the decision making mechanisms, social customs and political realities of the society. It is very interesting to see the different statistical results of each countries economic condition. This analysis is based on an article indicating the increase of prices on crude oil in the United States as of November 2000.
Oil prices in the United States have great impact on the economy. A major increase in oil prices reflects that crude oil is an important source of energy for industrial countries. While petroleum prices are high and the U.S. economic activity appears to be decreasing, a projected growth and moderate inflation is forecasted for the next two years. Unless the prices of other goods and services decrease then the aggregate price level will rise. OPEC (Organization of Petroleum Exporting Countries) is one of the main reasons why petroleum prices exceed the supp...