Elasticity Of Oil.

Justification

There are some industries in that practically have the control of the economic and financial market in the world, and one of those is the oil industry.
The oil industry is one of the most powerful markets in the world, because when we talk about oil we are talking about most of the products and services that we know, so we can say that is the fuel that moves the world economy,therefor the importance to know how elastic it could be and how much are the governments and countries able to get this fossil fuel in order to satisfy their people’s needs without thinking in the externalities that this pursuit could cause.

Objectives

General Objective.
To inform people the reality of the oil industry and its impact on the society, the environment and mostly thepolitical that this industry has in the world.

Specific Objectives.
* Explain each of the advantages and disadvantages of the exploitation of oil in ecosystems.
* Determine the conflicts that the oil industry have caused in the world
* Give some alternatives in order to reduce the elasticity of oil in the world

Introduction
The elasticity is a measure of how much buyers and sellersrespond to changes in market conditions.
In a market economy, if it raises the price of a product or service, the quantity demanded of it will fall, and if it lowers the price of that product or service, the quantity demanded will rise.
Elasticity advises extent demand is affected by variations in the price, thus can be products or services for which the price rise produces a small variationof the quantity demanded, this means that consumers will buy the same amount, regardless of the price variations, the demand for this product is inelastic demand.
Buyers typically buy more of a good when its price is reduced when their income is higher, when the prices of substitute goods are higher or complementary goods prices are lower.
Therefor we found interesting to study the elasticityof one of the most important products on earth, such as the oil, and its impact on the economic decisions that most of the countries make thinking in the income that this product give.

Theoretical Framework

Economy
Elasticity of the Oil.
1.1 What is elasticity?
Elasticity is an economic concept introduced by the English economist Alfred Marshall, from physics, to quantify the variationexperienced by a variable to change another. To understand the economic concept of elasticity we must assume the existence of two variables, among which there is a certain unit, e.g. the number of cars sold and the price of the car, or gross domestic product and interest rates. Elasticity measures the sensitivity of the number of cars sold to the variation in the price of them, or in the secondcase, the sensitivity of the GDP to changes in interest rates.
Elasticity is one of the most important concepts used in economic theory. It is used in the study of demand and the different types of assets that exist in the theory of the consumer, the incidence of indirect taxation, marginal concepts in the theory of the company, and the distribution of wealth. Elasticity is also of importance inthe analysis of the distribution of welfare, in particular, the consumer surplus and producer surplus.
In a market economy, if it raises the price of a product or service, the quantity demanded of it will fall, and if it lowers the price of that product or service, the quantity demanded will rise. Elasticity advises extent demand is affected by variations in the price, thus can be products orservices for which the price rise produces a small variation of the quantity demanded, this means that consumers will buy the same amount, regardless of the price variations, the demand for this product is inelastic demand. The reverse process is when small variations in the price much modify the quantity demanded and then says that the demand for that product is elastic.
1.2 What are oil and its...