2006-10-04 14:15:18 · 2 answers · asked by Al3x_Dogg 2 in Social Science ➔ Economics
chocolate-candy
2006-10-04 14:16:15 · update #1
There is no such thing as a "scarce" resource. Only a higher or a lower price. Gold is expensive (tens of dollars a gram), petrol is cheap (many litres for one dollar, before tax), yet the public think of oil as scarce because it's gone up in price recently. Supply is only meaningful relative to demand.
If the price of chocolates, or of cellphones, goes up, more people will produce them until there is market equilibrium.
The same goes for oil. It takes longer, though, because sinking oil wells takes years. There's billions of litres of oil in the tar sands of Athabasca, and of Venezuela. If they were sure the price of oil would stay high enough for long enough, oil companies would get busy extracting it (provided they could get permission to).
2006-10-07 21:01:27 · answer #1 · answered by MBK 7 · 0⤊ 0⤋
We are eating more chocolate than what is being produced each year!! The demand is high for chocolate..i can see why,im addicted!!! Its sooooooooo declish! :)
2006-10-04 21:22:17 · answer #2 · answered by yahooaddict 4 · 0⤊ 0⤋