Elasticity Of Supply And Demand: A Microeconomic Analysis Of

Elasticity of Supply and Demand: A Microeconomic Analysis of ExxonMobil and theirSynthetic Oil Brand, Mobil-1Southern New Hampshire University MBA 502-10032 Economics for Business 01:47:14 GMT -05:00Elasticity of Supply and Demand: A Microeconomic Analysis of ExxonMobil and theirSynthetic Oil Brand, Mobil-1ExxonMobil was founded in the late 1800s as a distributor of kerosine and has continued its existence for over 140 years (Our History 2023). While researching ExxonMobil many products are available to discuss, the topic in this document will be Mobil-1, a synthetic motor oil brand. ExxonMobil is part of the crude oil industry where supply equals demand, meaning the market is always in equilibrium.Defining Supply, Demand, and ElasticityBefore discussing how ExxonMobil is affected by the elasticity of supply and demand, it is important to define the terms broadly. Miller defines supply as “the quantities of goods and services that firms will offer for sale to the market” (Miller, Economics Today 2021 p. 58). Whereas demand is defined as “the quantities of specific goods or services that individuals…will purchase at various prices” ((Miller, Economics Today 2021 p. 49). Elasticity regarding economics is how responsive the price or quantity is to a change in