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08S7A's Economics Blog
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Monday, April 14, 2008
posted byElaine


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Content:
Cartoon depicts 2 men with oil on their overalls, commenting how expensive their oil splattered would be. The cartoon is basically trying to illustrate the growing oil prices.

Price has been increasing, because oil supply growth is slowing down. This is due to oil production surpassing new discoveries in 1980. Supply curve gradually shifts leftward, causing a gradual increase in price.

References:
- http://en.wikipedia.org/wiki/Oil_price_increases_of_2004-2006#Other_Causes

7:42 AM