One of the most important topics in Economics 101 deals with supply and demand. The subject of this second discussion topic will deal with oil. Approximately 20 years ago, a barrel of oil was selling for approximately $10 per barrel. Two years ago, the price of oil hit an all time high of approximately $145 per barrel.

The question is threefold:

(1) What caused the price of oil to go from $10 to $145 per barrel?

(2) Why did a barrel of oil go down from $145 to approximately $30 per barrel in recent months?

(3) What is the equilibrium price of a barrel of oil today?

Any position taken in your posting needs to be backed by RESEARCH.

Answer rating: 100% (QA)

Part 1 What caused the price of oil to go from 10 to 145 per barrel New York Mercantile Exchangeprices for West Texas Intermediate since 2000 monthly overlaid on daily prices to show the variation Ver... View the full answer