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This article looks at the Elasticity of Demand and Supply for oil. The increased costs of the production and higher prices are not leading to a fall in demand, but instead a fall in the elasticity of demand.

This article fits in my opinion very well to the topic of elasticities. It deals with price elasticity of both supply and demand for oil. The author is concerned with the increasing inelasticity of supply: "reserves we're now exploiting are not only more expensive to develop, but they also take much longer between the time the first well is drilled and the when the first oil is produced". There's also a graph in the article which shows the constant fluctuations of both supply and demand for oil, and how the American oil supply struggles to adjust itself to American demand for oil.

This article addresses the changes that have occurred in the oil market over the past ten years. The author claims that changes in the demand of oil have increasingly been playing a role in maintaining the supply/demand balance. He argues that these changes will be burdensome to our economy unless the demand for oil is made more flexible. According to the article, there is not a shortage of oil. Today, due to rising oil prices, we are able to exploit oil reserves which were previously too expensive to exploit. Since these new oil reserves are more expensive to develop and take longer to access, the time it takes for oil supply to respond to changes in price is increasing as well. This means that "...the oil is becoming less elastic..." meaning that "a large change in price produces a small change in supply." In regards to the elasticity of demand, "the elasticity of oil reflects the options we have to using oil for our daily needs." Our ability to reduce oil consumption is fairly limited in the short term, but increases over the long term. However options for reducing oil consumption over any time period are often inconvenient. Reductions in demand due to high prices can be called demand destruction (a permanent move down the demand curve toward reduced demand) which can be detrimental to the economy. This is why people such as the media and politicians wish to have supply adapt to changes in demand instead. However, "there are also limits to the ability of oil supply to adjust." Oil is not easily accessible. Because oil supply has become less elastic, prices has had to become more volatile to force market adjustments. The author concludes by suggesting ways that the elasticity of oil demand can be increased and the pain of demand destruction decreased.

This article shows that a limited liability company named Linn Energy had their stocks lose value heavily, as well as a massive revenue decrease. This happened because of the oil bust, which was a massive decrease in demand for oil. Since the oil demand was becoming elastic due to the fact that it was a necessity for which alternative methods had been or started to be found (coal, solar energy, etc.), there was not much that could be done about the decrease in demand, which in turn took a toll on Linn Energy.

The oil bust definitely would cause a decrease in demand but it would also cause a decrease in supply because a bust is a "decrease in economic growth and production." I however have to say that u probably misunderstood the concept of elastic and inelastic. Oil demand would be inelastic because oil is a product that is necessary for a lot of human activities and since it is a necessity, demand would be inelastic and not elastic.

With the lower prices less oil production falls. The lower prices also leads to less capital into the market and smaller companies with loans will struggle to pay back due to less revenue and profit. Some may have to declare bankruptcy. It is almost impossible to increase prices, because then other firms will offer cheaper oil and win your customers. The PED of oil is close to infinity and the XED between the oil of two different companies are a very high positive value

The Nigerian government must diversify the economy if the country is to survive falling global oil prices, said World Bank VP and Treasurer, Arunma Otteh. She said that Nigeria ranks 152 out of 188 in the HDI, and ranks below the average for sub-saharan Africa. Life expectancy in Nigeria is 53 years, 8 years lower than Ghana and 21 years lower than Brazil. Nigeria also ranked 136 out of 168 most corrupt countries in Transparency International's 2015 report. This affects the flow of FDI to the country. Nigeria's rapid GDP growth over the past decade hasn't translated to strong human development or competitiveness. Nigeria can no longer only depend on oil, which not sells for as low as $26/barrel which accounts for 95% of the country's foreign exchange.

This article highlights how the GDP is not the only factor in measuring the development of a nation, but how corruption and business confidence can play a role. This is seen by the decreasing oil prices, which has affected the Nigerian economy greatly.

The global oil equilibrium has become extremely fragile and the price of oil has been rising without stopping. Which has been causing the supply to increase but the demand to decrease significantly. Throwing it off its equilibrium

This article is really interesting because oil is so important to us in so many ways. As with the example of the couple in Iowa, everything from transportation to feeding animals is affected by the changes in price. The smallest increase in price could cause a shift in equilibrium and could leave hundreds, if not thousands, of people facing shortages.

The biggest long-term factor in the oil price is the cost of replacing oil wells as they run out ("deplete" in industry parlance). Rising oil prices will not decrease demand , as oil is a necessity and it has a price inelastic demand.

The above article is about the price mechanism and how it is used to price oil. It talks about how the price is allocated depending on other companies as well as demand, which is why i think that this article is very appropriate as a real life example of what I am studying on this chapter.

This article talks about how oil and how oil is becoming a very limited resource. The demand on this resource is high and has stayed that way. So because the price raised and the demand is still the same they have to supply a lot more equally everywhere.

As prices for commodities have decreased, the value of the Canadian dollar has decreased as well. Two years ago the Canadian dollar was worth 93 American cents, yesterday to was worth only 69 American cents. This depreciation in value is because the Canadian economy is heavily dependent on oil and other resources and it has had many impacts on Canadians. Imports, like fresh American vegtables, are now more costly for Canadians. Currently, a single head of broccoli in Canada sells for around $4. Last winters, Canadians could buy 2 for only $1.50. However, in many ways a weaker currency is helpful to the Canadian economy. The US is overwhelmingly the largest market for Canadian exports, which are now less expensive across the border because of the currency's fall. In addition, almost all commodity exports are priced in American dollars so foreign exchange gains have helped cushion some of the blow to Canadian oil producers and mining companies.

China is known for being a very populous state and the leading commodity producer, as a matter of fact American trade with China is considered one of the largest trading markets. So it would be expected that China's depreciation is affecting so many countries. The Mexican peso dropped by 1.1%, and the Colombian peso by 1.3% . This means their the amount of Chinese money that could be exchanged with just one of that country's peso has decreased. Economists are blaming it on falling oil prices and weak economic data. This was foreseen depreciation was foreseen as oil demand was already decreasing and investments into China were low so as preparation Colombia has raised its lending rate. This could work and help combat the inflation that has been caused because it would influence trade and investments. This is all in hopes that the exchange rate will rise again.

In this article they take about how it impacts how people travel when prices of gas rise. Oil is very important because it operates cars and other useful technology we have. Without oil there will not be no electricity.

Global oil prices have fallen sharply over the past seven months, leading to significant revenue shortfalls in many energy exporting nations, while consumers in many importing countries are likely to have to pay less to heat their homes or drive their cars. From 2010 until mid-2014, world oil prices had been fairly stable, at around $110 a barrel.

Many things are affecting what the outcome of Niger's latest election will be. An issue of concern for the country is that they are ranked lasted bu the UN in human development. Despite producing uranium and oil, Niger has the lowest HDI and the highest fertility rates. President Issoufou has used planning to address this issue to help his campaign. Niger's elections are being affected by the HDI because the other issues that the country has comes from their HDI being so low

Reliance Industries Ltd. (RIL) and state-run Oil & Natural Gas Corp. (ONGC), India's biggest natural gas producers, plunged in Mumbai after India's cabinet deferred a move to increase natural gas prices by three months. Reliance dropped 3.7 percent to 1,011.90 rupees, the biggest decline since Sept.

This article, published by Fortune Magazine on October 3, 2015, describes how the decline in global commodity prices has led to economic problems in developing countries. Also, these falling prices have impacted sellers of valuable primary sector goods such as the Middle East's Gulf States, which supply oil to much of the world.

This article discusses global economic growth. For the past several years, aggregate GDP growth has been around 3-3.5% per year, with similar levels of inflation. Growth trends in major economies have slowed and a gap between global aggregate demand and supply for goods/services persists. There is an excess of global supply relative to global aggregate demand. The article claims that falling oil prices, low interest rates, and monetary accommodation are responses to the issue of excess supply.

Euro has been facing slow recovery from the suffering economy in Europe however it is hard for the euro to get out of deflation because of emerging markets that are making it harder for recovery. The recovery has been led by Germany which makes up 30% of euro-zone GDP however their exports have fallen in August compared to that of July.In France an issue in oil prices has acted the same as tax cuts for consumers and businesses.The euro still looks like it will be facing very low inflation in the coming years.

Amid growing domestic issues, such as corruption and political instability, Mozambique continues to suffer from a lack of foreign direct investment and economic growth despite promising offshore oil deposits. Highlights domestic factors that influence economic growth and development.