Question:

What is Supply Destruction?

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We've all heard of Demand Destruction in the energy markets as people conserve and buy less energy. That drops the price of oil if we don't use it.

But as Supply increases from Demand Destruction, and as capitalist corporations are in the business of making money from their mined energy, all they have to do is find new markets to buy the commodities that they are not selling in the US, right?

So since they have the supplies, and want to make money off those supplies, neglecting US markets if they have beaten them down enough, selling to people/countries/ US's enemies in many cases, countries that subsidize their populations by paying for the energy or food and bidding it up,...survival of the one that will pay the most, would you call this Supply Destruction?

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  1. Reduction of known available inventory - whether a manufactured good, or a natural resource.  The finite supply reduction will, all else equal, increase prices net net, just as demand reduction, all else equal, will reduce prices net net.


  2. Supply destruction would be the depletion of resources, presumably because they are being used up.

    Fish in the sea such as wild salmon would be an example of supply destruction.

    Oil might be an example, but the untapped reserves keep rising.

    There's not much evidence that any commodity has trouble being sold.

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