sume the oil demand schedule for the market is Pd = 200 - 4Q and the supply schedule is P, = 80 + 2Q. If companies like Drill-a-palooza and We Love Fracking do think about the future generation at all, how much oil would be refined and sold? At what market price?

Which of the following represents a longrun adjustment? Murtiple Choice A farmer uses an extra dose of fertilizer on his com crop. Unable to meet foreign competition, a U.S. watch manufacturer selis one of tits branch prants. A steel manufacturer cuts back on its purchases of coke and iron ore. A supermarket hires four accitional cierks.

What are the threats and opportunities for the Economical environment of Apple and why?

Question 1: Hotelling’s Rule in a rapidly changing market Let’s assume that oil was not discovered until the year 1999. The New York Times writes that“a source of energy with potential disruptive effects on the world economy” is now ready forproduction, and “other countries are watching the developments closely”.Along with many other producers, you own a small oil well. The market is very competitive. Themarginal extraction cost is $10 per barrel. The interest rate is 5%. The annual demand for oil isQ = 90,000 – 2,000P where Q is in barrels per year and P is in dollars per barrel.Use your knowledge about Hotelling’s Rule to answer the following questions: Oil is trading for $25/bbl on Jan 1st, 1999. What do you expect the path of oil pricesand extraction quantities to be from 1999-2010 (assuming no shocks to the market)?A day later, on Jan 2nd, 1999, the Wall Street Journal opens with a story that there is now amore reliable reserves estimate. Total reserves are estimated at 760,000…