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How does a shortage affect share prices?

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How does a shortage affect share prices?

Postby ern10 » Sun Mar 24, 2013 9:57 am

If for example there was a shortage in LNG how would this affect the share prices of those companies that provide LNG, like Rio Tinto?
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How does a shortage affect share prices?

Postby wilmer » Sun Mar 24, 2013 10:07 am

It would depend on a lot of things
- would rio tinto be able to provide where others cannot?
- are rio tinto going to suffer from a shortage of LNg too?
- will consumers switch to other fues?
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How does a shortage affect share prices?

Postby twein » Sun Mar 24, 2013 10:18 am

Of course a shortage pushes prices up. But can the output be increased at the higher price? Will the buyers buy less if prices are high? Will buyers look for alternatives? Everything runs on supply and demand!!
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