Just found out from here ( http://sg.news.yahoo.com/afp/20081024/tts-opec-commodities-oil-price-decision-c1b2fc3.html ) that OPEC (Organisation of Petroleum Exporting Countries) is cutting down the supply of oil.. My first reaction was - are they crazy? Refering to my little cute diagram, if there is a reduction in quantity supplied, prices will go up..
- OPEC is the biggest cartel in oil export
- we can say it's almost literally a monopoly
- which also means that they're price setters
- which in turn implies that we're gonna die..
The inelastic nature of demand and supply will also cause price to rocket and we're even 'dead-er'.. The economic crisis is already so freaking crazy right now and they have to do this.. It's gonna be so scary if there's inflation and recession at the same time..
On the other hand, reducing the supply of oil may force more research for better alternatives like natural gas and in the long run, we can reduce our dependance on oil and perhaps save the environment as well.. amazingness..
Thank god i'll be going to NS soon.. hahahah.. i'm probably 'safe' from this mess :) congrats to whoever's going to NS too hahahah :D
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