01 May '11, 11am

Topic: Oil prices ... Discuss: (Source: Environmental Economics) From the WSJ 360 (the interdisciplinary newslet...

What are the current trends in oil prices? What are some of the causes of those trends? How does the economic dynamic of supply-demand-price work? How is this theory illustrated in different ways throughout the article? Offer some other examples of products or services that have fallen victim to a decline in volume after an increase in price. What other products seem to be immune to this dynamic? Why is demand for some products or services sensitive to price increases, and other products experience little or no price sensitivity? What are the pricing practices in the industries you follow? How are pricing decisions made in these industries? Should pricing decision be made based on the cost of the good or service, or based on market factors? Why? What steps can be made in your industry to mitigate price uncertainty?

Full article: http://www.env-econ.net/2011/05/topic-oil-prices-discuss....

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