Question 1:
The recent slump in oil prices has raised questions about the prospects for alternative energy sources. However, in today’s global markets, the historic correlation between oil prices and the demand for alternative energy has been weakened by the fact that these two types of energy sources are used for totally different purposes. Oil is mainly used in transportation while alternative sources such as solar, biofuel and wind are used for electricity generation (Day, 2014). From basic economic principles, oil and alternative energy sources are not substitutes since a price decline of one does not constitute a subsequent decrease Continue reading...