Require vs. Demand - What's the difference? | Ask Difference
Furthermore, the demand curve drawn for a commodity sold at a certain price shifts when the relationship between price and quantity fluctuates. We can see that. Production function A formalised relationship linking the production factors and Price elasticity of demand Change in quantity demanded relative to thé in— dépendante et l'autre dépendante, pendant la même période de temps. what is the law of demand? there is an inverse relationship between price and quantity demanded - Philosoraptor.
Demand - What's the difference? Wikipedia Demand In economics, demand is the quantity of a commodity or a service that people are willing or able to buy at a certain price, per unit of time. The relationship between price and quantity demanded is also known as demand curve.
Preferences and choices, which underlie demand, can be represented as functions of cost, benefit, odds and other variables.
Determinants of Factors affecting demand Innumerable factors and circumstances could affect a buyer's willingness or ability to buy a good.
Some of the common factors are: The basic demand relationship is between potential prices of a good and the quantities that would be purchased at those prices. Generally the relationship is negative meaning that an increase in price will induce a decrease in the quantity demanded.
This negative relationship is embodied in the downward slope of the consumer demand curve.
The assumption of a negative relationship is reasonable and intuitive. If the price of a new novel is high, a person might decide to borrow the book from the public library rather than buy it. Price of related goods: The principal related goods are complements and substitutes. A complement is a good that is used with the primary good.
Supply, demand, and market equilibrium | Microeconomics | Khan Academy
Examples include hotdogs and mustard, beer and pretzels, automobiles and gasoline. Perfect complements behave as a single good.
If the price of the complement goes up the quantity demanded of the other good goes down. Mathematically, the variable representing the price of the complementary good would have a negative coefficient in the demand function.
The other main category of related goods are substitutes. Substitutes are goods that can be used in place of the primary good.
The mathematical relationship between the price of the substitute and the demand for the good in question is positive. If the price of the substitute goes down the demand for the good in question goes down. Here are the mathematical facts of life regarding net exports: Given an ongoing, and inevitable, decline in production in the net oil exporting countries, unless the exporting countries cut their liquids consumption at the same rate as, or at a faster rate than, the rate of decline in production, the resulting rate of decline in net exports will exceed the rate of decline in production and the net export decline rate will accelerate with time.
Nony October 18, at 5: EF 47 is a normal listed form of oil in Platts price lists.
Economic effects of shocks to oil supply and demand | Econbrowser
Light oil and condensate is used to make gasoline and other products and runs through a refinery. It is easily and routinely blended with heavy oil and is actually needed for that not just as a diluent for transport but for optimizing the subunits of complex refinery non complex refineres, e.
Condensate and EF crude is withing a few dollars of WTI and correlates with price moves very closely. EF 47 is actually pricier than heavy sour crudes.
Talk to any trader, refinery buyer, or even just a microeconomist familiar with looking at substitutes. Perhaps some small shrinking of spreads between qualities, but often not even a directionality change. Total conversation killer and often ignored by even your compatriots. Erik Poole October 19, at 8: You make good arguments for lumping crude oil and condensates. The problem with a net export perspective is that it ignores the global nature of the market place and at some point, an indifference to whether heavy oil imported into the US refinery complex hails from western Canada, Venezuela, Mexico or Colombia.
Or even Iran some day. If we could draw and compare distribution curves of oil grades over the lastI suspect we would see the distributions flattening out over time as extreme grades become more prominent.
It may even be bi-modal at this point.
Given the expense of retooling refineries and the robust growth in US condensate production, one can see the interest in securing more pipeline access to Canadian bitumen. It clearly illustrates symptoms of the Resource Curse and the general difficulty experienced by citizens in weak societies to play and cooperate well together.
It does not however say much about the US cheap energy entitlement and how that attitude has hurt US national security and economic performance over time. Brown October 19, at 3: I am arguing that the available data strongly suggest that global crude oil production probably peaked inwhile global natural gas production and associated liquids, condensate and natural gas liquids, have so far continued to increase.
Nony October 19, at 5: NGLs are more gas like, so you can put them with gas if you want instead of oil or just make a third grouping. Lease condensate is just the associated entrained liquid oil from a primarily gas well.