Discussion for online Economics class Article Example | Topics and Well Written Essays - 250 words

Discussion for online Economics class - Article utilizationThe current position of China in global economy has also contributed to the inelastic nature of its Australian mining sector. For instance, China is more concerned with economic domination rather than profits. Thus, China has vast interests in controlling the mining and energy sector, leading to the inelastic nature of mining. Unlike other commodity such(prenominal) as farm produce and manufactured goods, minerals are increasingly becoming scarce. This indicates that their economic value add at a faster rate than their market value. For instance, the market price of a barrel of unprocessed oil is much lower than its economic value. This indicates that demand for oil is not driven by the market value of the product but by its economic value. In a normal economy, a lucubrate is followed by a bust. Currently the Pilbara Region is experiencing an economic boom and, producers are cautious about a possible economic bust. In or der to protect themselves against such occurrences, production decisions are not base on income from mineral