NickB79
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Tue May-20-08 01:47 PM
Response to Reply #6 |
26. Remember, small declines can ripple out into large price spikes |
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For example, the 1970's oil embargo by OPEC only took 5% of the world oil supply off the market, and we all saw the effect that had on prices.
Once demand passes supply, the price increases stop being linear and instead look more exponential. This doesn't apply just to oil, but to just about any other good that doesn't have a readily available substitute.
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