Do rising oil prices affect the american job market? If so then how does it affect the market?

Question

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Answer 1

yes it will lower the car industry profit rates (lesser demand, thus there will be unexpected of more supply of cars because no one is buying, which overall means cheaper cars so the companies can get rid of the cars) and increase of the public transit industry (because lack of demand for cars, due to price of gas prices....)

people will travel less (does not only affect the car industry but any form of transportation services, even public transit (buses, trains) will be more expensive than it was... but air traveling prices as well. it will then affect the travel and tourism industry which will affect the countries that are advertised-- which affected those who helped advertised the advertisements (advertisement agency) which affects the models and the photographers and the artists and the creative directors which then affects the program companies of those graphic designers (ie adobe, painter, etc etc) which affects websites which promotes art (deviantart) which affects web hosting industries, which affects e-market communities-- which affects those who are involved in the internet providing services-- which affects the engineers and the technicians-- which affects the demand for those job markets thus students will be not likely to take those courses-- which affects the schools, which affects the professors--which affects the institution--which affects the---- u get it. right?

realistically, because America does not own any oil rigs or land that has oil-- since they buy it else where, the money goes into another country-- which means that usa loses money and there isn't enough money to go around in the country-- which means deduction in employment rates and wages-- however, no matter what price oil is set at, the rich won't be affected. but the majority of the population in America is not rich.. they are mostly of poverty or middle-class people-- they will be heavily affected which the usa government and its economy really rely on them to run--- you can't just say, "oh we still have rich fellows--to help out the economy" but it doesn't make sense, they got rich by getting money from the poor!!!!!

note: for all those who don't get it, im partially joking, J-O-K-I-N-G. I was kinda laughing while typing this out--lool

but in a demand and supply graph, if one of the two is decreasing there will be more of the other one because it stays the same which means there will be MORE of than the other. Like if demand is high, then supply will be not as high as demand, because there will be constantly sold outs-- and people wants it-- like the wii, it was high in demand but it would always be sold out-- and not everyone gets one because the manufacturers can't meet the supply to its demand--  It doesn't make sense if there is less demand of something there will be less supply of something, because if there's less demand for it in the beginning, how come there would be a less supply for it if there's no demand (people ain't buying it) in the beginning? There would be more supply than of its demand. It's not like the company is going to destroy their products, unless the company's have done infringement in the country's copyrights laws, then the country will destroy it. (ie. garfield toys were destroyed in bangkok because the company that produced them did not honour copyright restrictions). Simply the stores will remove it from its stocks, however, it will still exist, the products itself... In marketing, some companies allow the businesses to place their products on the shelves, the business gets extra money for placing the products in a certain location where it gets more attention, thus it's more likely that someone will buy it because they see its availability or it's in stock. However, despite this, if the product fails, the company and the business either have negotiated that if the product does not sell well, they can send back the stock and receive back their money-- It's just a form of a marketing strategy that they use to promote and sell at the same time-- So in the end, the products will exist, the stock still exists, the supply still exists, there is no lesser of supply simply because there is lesser demand. There will be fewer supply but more than of demand if there is lesser demand. Such as school supplies, computers and appliances. For instance, because almost every household has a computer, there will always be computers in supply, but not as much demand because the majority households in a country owns one or two. There is lesser demand and because of that there is more supply. If no one wants as much of the product, there will be more products (supply) in stocks than it should. If people want it, there will be fewer supply, because everyone is buying it-- and manufacturers will take some time to make them and distribute them into the stores-- like the wii-- or computers...

In general, computers are not in a lot of demand, so they make less but there will always be in supply (which is why computers today are cheap, like you can get a decent computer for 500 from dell, before it would have cost over 1500 just to match those speculations a few years ago)-- which is more than of demand because you never know if the demand rises-- there will be enough supply to supply the people's needs/wants. More supply means it's cheaper because there is lesser demand, because not a lot of people want it, either because they have one, don't need one, expensive, or the system is changing (which is unlikely for computers).

Anyway, it does affect the market, that's all I'm going to say.

btw, so much for an university undergrad who can't spell "hired" correctly.

Answer 2

Chopsite2:

That has got to be the most horrible answer I have ever seen on all of yahoo answers.

None of what you said is economically sound.

"lesser demand, thus more supply"? Demand cannot affect supply only quantity supplied and a decrease in demand would lower the quantity supplied not raise it.

I could spend a long time going through your answer but I won't.

To answer the question: rising oil prices can affect the american job market because it affects gasoline prices which raises transportation costs. Business firms will respond to the rise in costs by producing less at a higher price (shift of the supply curve inwards in response to higher resource costs) the reduction in supply will mean less people will get highered. This is the affect rising oil would have on the job market. The question is not what the affect will be but how big will it be. It might not be a material affect.