QUESTION 3 Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. (On a piece of scratch paper you should use the 4 step method, draw a diagram, and determine directions of price and quantity) ✓ Cars are becoming more fuel efficient, and therefore get more miles to the gallon. ✓ The winter is exceptionally cold, people need more oil to stay warm ✓ A major discovery of new oil is made off the coast of Norway. ✓ The economies of some major oil-using nations, like Japan, slow down ✓ A war in the Middle East disrupts oil-pumping schedules ✓ Landlords install additional insulation in buildings A. price decrease, quantity increase B. price decrease, quantity decrease C. price increase, quantity increase D. price increase, quantity decrease

QUESTION 3 Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. (On a piece of scratch paper you should use the 4 step method, draw a diagram, and determine directions of price and quantity) ✓ Cars are becoming more fuel efficient, and therefore get more miles to the gallon. ✓ The winter is exceptionally cold, people need more oil to stay warm ✓ A major discovery of new oil is made off the coast of Norway. ✓ The economies of some major oil-using nations, like Japan, slow down ✓ A war in the Middle East disrupts oil-pumping schedules ✓ Landlords install additional insulation in buildings A. price decrease, quantity increase B. price decrease, quantity decrease C. price increase, quantity increase D. price increase, quantity decrease

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 4SCQ: Many changes are affecting the market for oil. Predict how each of the following events will affect...

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