Tuesday, January 27, 2009

BEL business econ notes

Last july - 147/bbl peak and goldman sachs predicted $200 soon! 
on 1/20/09 - $38.74 per barrel!!! 
what drove prices up? - speculation /expectation
what drove them down? - 


Market demand
  1. D is quantity of good aquired by consumers in period of time depending on price and other factors
  2. text indicates direct D and derived D 
  3. Distinction based on whether consumer value (utility) is directly served not:
  • direct D would be from immediate consumption of a good 
  • Derived D can be by firms (inputs to some other outputs that generate value)
  • Derived D - can be for consumer products - gasoline or autos?

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