What are some examples of historical cost fluctuations?

What are some examples of historical cost fluctuations?

Historical cost fluctuations can be seen in various markets, such as oil, housing, and food prices. For instance, oil prices saw significant fluctuations during the 1970s oil crisis.

Can you explain the reasons behind the oil price fluctuations?

Certainly! The oil price fluctuations in the 1970s were primarily due to geopolitical tensions, OPEC's production cuts, and increased demand. These factors led to a sharp rise in prices.

What about housing prices? Have they fluctuated significantly?

Yes, housing prices have fluctuated greatly, especially during the 2008 financial crisis when prices dropped dramatically due to the subprime mortgage crisis.

Are there any recent examples of cost fluctuations?

Yes, recent examples include the fluctuations in lumber prices during the COVID-19 pandemic, where prices surged due to supply chain disruptions and increased demand for home renovations.