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Price Elasticity Of Shale Oil

705 Words3 Pages

Impact of price elasticity
Rebecca Meripo
Westcliff University Table of contents

contents
Page number

Abstract
3

Introduction
4

Supply and demand picture of shale oil
4

Impact of price elasticity of supply and demand in short and long term 5

References
6

Abstract In short run the price elasticity of the supply and demand is low and in long run its more elastic because the producers of the oil or any other product will have enough time to come out with more efficient methods as a result the price reduces in the long run. Mainly in the oil industry there are always ups and downs in case of shale oil after facing the down turn the recovery reminds that the shale oil should adapt large structural shift in long run rather than the short term excess.

Impact of price elasticity …show more content…

Profits are never same at all times, there are changes if the product is profitable then the supply is more and the price is also increased so in order to determine the cost of the product the law of demand and supply is used. The supply of a product is increased when the price increases. For example in free market if the customer likes pens instead of pencils then the price of pens increases resulting in decrease in price of pencil so when the producers of supplies see the shift in demand they decide to produce pens instead of pencils because it gives more profits (Ross,

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