Rising Prices of Essential Commodities Over the past few years, these essential commodities have seen price rises ranging from 72 percent to percent.
But the high oil price does not influence every economy by the same degree. These soaring prices have caused great unrest and frustration among the people. During this winter, the price of natural gas has gone through the roof.
The hikes in price are caused by both the demand and the supply of these commodities. They lower the general standard of living and cause mass unrest.
Affecting the price of oil have been several factors that would affect the market price of any commodity. Making predictions into the future is not what this paper is about. The unfortunate impression left by the shortages of gas in the 's caused the people to believe that there was a small amount of gas left.
But during the last two decades, prices of almost all the essential commodities have been increasing at an alarming rate. Much food is being wasted in the parties and marriages. As a result, more than workers were laid off since the last summer by British Airways.
Many people don't realize how much drive-offs affect the gas prices. The retail industry is damaged by increasing oil prices because shipping firms charge greater pricesit become harder for retailers to obtain their goods to market and put pressure on them to increase prices.
On average, developing countries need more than twice the amount of oil to produce the same economic output as industrialised countries do.
Again, stocks were affected, and the economy suffered. Political Conditions and International Relations: If one looks at a region like Iraq as an example, political unrest in recent times has not allowed trade to take place; their economy is weak and products are expensive.
By holding back these commodities, they are able to create a bigger demand and thus, an increase in prices. As a result, while some European car producers commercialise hybrid solutions, the market will probably experience rose demand for hybrid cars.
All the more, the soaring prices have become a big threat and an open challenge to the government. The economic reaction to greater inflationhigher unemploymentless exchange rates, less real output also affects the overall influence on the economy for the long-term.
The impact of rising fuel prices Introduction This essay will review how the rising fuel prices affect the different macroeconomic variables such as inflation, rising production cost, unequal economic conditions between oil exporting and oil importing nations.
In the short run the supply of natural gas is very inelastic because they cannot just produce more gas. Life has become very hard. Inflation can be noticed when the prices of basic commodities increases such as milk, gas and bread.
Again, the demand outstrips the supply and prices go up.Effects of Rising Oil Prices Essay In the past, the price of oil has led to economic recessions, such as the and energy crises.
The effect the price of oil has on an economy is known as a price shock. In many European. Essay on “Rising Prices or Price Hike” Complete Essay for Class 10, Class 12 and Graduation and other classes. Global Rise Of Oil Prices Economics Essay. Print Reference this. Published: 23rd March, This price spike in oil prices is due to a combination of factors, first the Kyoto protocol that finally came into effect inthe rising demand from India and china, the neglect from oil companies and investors as they search and research on.
Over the past two years, oil prices have increased very rapidly. "With OPEC production cuts and a growth in crude oil demand," oil prices went from a year low of $11 per barrel in February to a peak of close to $36 per barrel in December (Jablon 1). RISING PRICES.
OR. PRICE HIKE Prices are ever on the increase. A rise in prices, economists say, is a sing of development and prosperity. But during the last two decades, prices of almost all the essential commodities have been increasing at an alarming rate. Rising Oil Price Essay Factors that Affect the Price of a Product Introduction: There are several forces that influence people’s daily lives.
Some of these influences may or may not be directly experienced; they may affect a person in a manner that has one blame something completely different.Download