Understanding the joint effect of market forces. You (should) have understood by now that market prices are determined by the joint forces of supply and demand. This week, we will discuss how the joint forces of supply and demand impact the price of oil. Explain why the price of oil is so high right now. Then explain why the price of oil plummetted in the summer of 2020 , resulting in a negative price for oil futures (an oil futures contract specifies the price at which delivery of oil will take place in the future). Demonstrate your understanding in terms of shifts in demand and supply curves. Starting with an iinitial set of demand and supply curves in february of 2020 for instance, depict what happened to demand and supply curves by summer of 2020 that explains the step step drop in oil prices. Do a similar analysis for the price of oil now.
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Understanding the joint effect of market forces. You (should) have understood by now that market prices are determined by the joint forces of
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