Supply And Demmand

Today, as my peers and I were reading a section from the Economics Today and Tomorrow Book in my Economics class I learned many terms that can apply to oil. For instance, I learned that Demand is the willingness and ability people have to purchase certain goods and services they either need or want. Supply is the decision the seller makes on the amount sold and the prices for each good and service. These economic terms can apply to oil because people do supply and demand oil according to their economic status. Many people demand oil because they are willing to and have the ability to purchase many goods and services that contain oil such as gasoline. The gasoline is sold to the consumers, but before going out to the market, the seller decides how much he/she will sell and the price for each type of gas. To test our knowledge about oil, Ms. Sanchez asked us to take a quiz at www.thatquiz.com. After taking the Oil Quiz, I wonder so many things like, who the largest oil producer in the world is, when the increase in oil production is truly expected, and what we will do without oil. I am surprised to find out that when the world encounters an oil shortage, not even the wealthiest people in the wealthiest countries will receive the most oil. I am also surprised to learn that the United States was within the largest oil producing countries in 2005 when to my understanding, this country was always short on oil, so short that they went to war to fight for oil. This is interesting, I would like to look deeper into this. There is still something I do not understand though, how is it that if another country such as Canada increases their oil production, others do not get affected, if there is a certain amount of oil for the whole nation? How is it that if an oil-exporting country decreases its oil production, oil exports will not necessarily decrease by a similar quantity.

SOURCE: wordpress