Question

How do you think each of the following affected the world price of oil?(use supply and...

How do you think each of the following affected the world price of oil?(use supply and demand analysis)

A. Oil was discovered in the North Sea

Sport utility vehicles and minivans became popular

C price of oil decreases

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

A. Quantity of supply will be increase. Supply curve shifts to the right. Equilibrium price will fall and quantity will increase. Demand is constant. This is a shift in the determinants of supply.

B.Quantity demanded will increase due to an increase in demand for sports utility vehicles and minivans, which are complementary goods. Demand curve shifts to the right. Equilibrium price and quantity will increase.

C. When price of oil decreases, this is a movement along the demand curve for oil. Demand for oil will increase.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
explain using aggregate demand and supply modeling how a decrease in world price of oil, due...
explain using aggregate demand and supply modeling how a decrease in world price of oil, due to the pandemic and the Saudi and Russia oil war, was achieved. Also, explain in depth as to what will happen to a country's output, income and employment if that country exports oil
Identify in each of the situations who is affected (demand / supply) and how it affects...
Identify in each of the situations who is affected (demand / supply) and how it affects (increases / decreases) : We have Identified in each of the situations who is affected (demand / supply) and how it affects (increases / decreases) : please illustrate in a graph how each situations are effected. So we are able to see it visually the outcome. 1) THE RICE OFFER INCREASES. Offer Increase 2) LIKES AND PREFERENCE FOR A BEAUTY PRODUCT FOR EYELASHES HAVE...
Assuming market-determined exchange rates, use the supply and demand schedules for pounds to analyze the effect...
Assuming market-determined exchange rates, use the supply and demand schedules for pounds to analyze the effect on each exchange rate (dollars per pound) between the U.S. $ and the British pound under each of the following circumstances. Make sure to tell what happened to the value of the dollar and the exchange rate (and use graphs). Britain's oil production in the North Sea decreases, and exports to the U.S. fall.
(For simplicity use hypothetical prices) Assume that the world price of oil is $15 per drum....
(For simplicity use hypothetical prices) Assume that the world price of oil is $15 per drum. At that price, Country A imports 400 million drums a day and consumes 600 million drums a day. The government then imposes a $50 per drum tax oil imports. For every $1 increase in oil prices, domestic consumption goes down 20 million drums a day while domestic production goes up 40 million drums a day. a) What will the new oil price be? (assume...
For each of the following cases a-e, you will use the Supply & Demand theory and...
For each of the following cases a-e, you will use the Supply & Demand theory and model to determine what will happen to the equilibrium price (P*) and equilibrium quantity (Q*). Explain how you reach your conclusions by following the 4 steps below (in that exact order) for each case a, b,....: Be neat! Do not clump all your answers together. 1. Among all the variables/determinants that shift the curves, which variable(s) apply(ies) in this case? Only use variables introduced...
PROBLEMS ON DEMAND AND SUPPLY Use demand and supply analysis to answer each of the following...
PROBLEMS ON DEMAND AND SUPPLY Use demand and supply analysis to answer each of the following questions. Assume that the respective market is in equilibrium before the change takes place. Graphically analyze whether there is a movement or a shift in the appropriate curve and then determine the effect on the equilibrium price and quantity. Draw a separate diagram for each question in each market. 1. In the wheat market: A new fertilizer is developed with a lower cost The...
Fill in the following table describing each events affect on market supply, demand, price and quantity...
Fill in the following table describing each events affect on market supply, demand, price and quantity in the market for potatoes, a normal good, indicating an increase, decrease or no effect on each variable: (Note: The first one is done for you.) Question Supply Demand Price Quantity 1. Rainfall increases in the market for potatoes Increase No Effect Decrease Increase 2. Number of farmers decreases 3. Consumer’s income increases 4. Price of rice, which is not an alternative good for...
Oil supply You are employed to advise a petroleum company on the following problem: The company...
Oil supply You are employed to advise a petroleum company on the following problem: The company has three oil plants A, B and C. They want to know how many barrels of crude oil each plant should produce to meet the market demand. Each plant can produce barrels of crude oil, and then convert the crude into motor oil, diesel oil, and gasoline. From each barrel of crude oil, plant A can produce 20 gallons of motor oil, 10 gallons...
Suppose that the world price for a good is 120 and the domestic demand-and-supply curves are...
Suppose that the world price for a good is 120 and the domestic demand-and-supply curves are given by the following equations: Demand: P = 200 – 8Q Supply: P = 20 + 10Q       a. How much is domestic consumption?       b. How much is domestic production?       c. Calculate the values of consumer and producer surplus.       d. If a tariff of 30% is imposed, how much do consumption and domestic production change?       e. What is the change...
Suppose the world price for a good is 40 and the domestic demand-and-supply curves are given...
Suppose the world price for a good is 40 and the domestic demand-and-supply curves are given by the following equations: Demand: P = 80 – 2Q Supply: P = 5 + 3Q a.   How much is consumed? b.   How much is produced at home? c.   What are the values of consumer and producer surplus? d.   If a tariff of 10 percent is imposed, by how much do consumption and domestic production change? e.   What is the change in consumer and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT