Question

2. Answer the following two questions by filling in the table below and explaining your answers. You may draw graphs to assist you if you like, but you must still check the correct cell in the table get credit for your answers. Assume that the demand and supply curves for a specific country represent domestic supply and demand and do not count imports as part of supply or exports as part of demand.

a. New policies for international trade by the Trump Administration, combined with Congressional tax cuts cause a surge of economic growth in the United States.

Â	shifts to the right	shifts to the left	stays the same
World demand curve for crude oil	Â	Â	Â
World supply curve for crude oil	Â	Â	Â
U.S. demand curve for crude oil	Â	Â	Â
U.S. supply curve for crude oil	Â	Â	Â
Â	Â	Â	Â
Â	rise(s)	fall(s)	change(s) little
mp World crude oil prices	Â	Â	Â
U.S. crude oil prices	Â	Â	Â
World oil consumption	Â	Â	Â
U.S. oil consumption	Â	Â	Â
U.S. oil imports	Â	Â	Â

Explain your answers.


b. The Chinese government responds to public pressure over massive air pollution and issues new regulations requiring coal-burning power plants and industrial facilities to meet new emissions standards or shut down.

Â	shifts to the right	shifts to the left	stays the same
China demand curve for coal	Â	Â	Â
China supply curve for coal	Â	Â	Â
U.S. demand curve for coal	Â	Â	Â
U.S. supply curve for coal	Â	Â	Â
Â	Â	Â	Â
Â	rise(s)	fall(s)	change(s) little
China coal prices	Â	Â	Â
U.S. coal prices	Â	Â	Â
China coal consumption	Â	Â	Â
U.S. coal consumption	Â	Â	Â
U.S. coal net exports	Â	Â	Â

Explain your answers.

Answer 1

a. Surge of economic growth in the United States will World demand curve of crude oil to right. World supply of crude oil will say same. U.S. demand curve for crude oil shifts to right And u.S. supply curve of crude oil stays same. World crude oil price rises, u.S crude oil prices rises, world oil consumption rises, U.S oil consumption rises and U.S. oil imports rises.

b. Demand curve will stay same, supply curve of oil will shift to left, U.S demand and supply curves will stay same, Chinese coal price rises due to leftwards shift of supply curve, Chinese oil consumption declines, U.S> oil consumption will stay same and U.S cola exports rise due to shortage in China