Respuesta :

Answer:

The most striking feature of the oil market is the low price elasticity of demand.

The supply of oil is also fairly inelastic.

Oil price swings tend to be dramatic and often impact the rest of the economy.

Baraq

Demand is a consumer's desire to buy and willing to pay for goods. The demand for petroleum has been reduced due to transportation and seasonal change.

Transportation (both commercial and personal) and seasonal changes are ways for petroleum to be reduced. For instance, oil use increases during busy summer travel seasons and in the winters, when more heating fuel is consumed, then, there will be reduction in its demand.

Also, when there is a cheaper means of transportation such as rail line or water ways, the demand for petroleum us reduced.

Justifications for the reduced demand are

  • Economic growth can drive up the demand for crude oil, while slowdowns tend to lower demand and prices.
  • Reason crude oil prices can be volatile. It is that supply and demand are relatively inelastic. Hence, it is seasonal.

Therefore, the two ways demand for petroleum has been reduced is due to transportation and seasonal changes

learn more demand: https://brainly.com/question/1245771