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Answer question C only please a) Draw a supply and demand graph for crude oil. L

ID: 1176549 • Letter: A

Question

Answer question C only please a) Draw a supply and demand graph for crude oil. Label the equilibrium P and Q. Show the consumer and producer surplus. b) Draw a new supply and demand graph showing the original equilibrium and what happens if major new oil reserves are discovered increasing the production of oil. Label the old and new equilibrium P and Q. c) Draw a new supply and demand graph showing what happens when world economies strengthen so that buyers need more oil. Answer question C only please a) Draw a supply and demand graph for crude oil. Label the equilibrium P and Q. Show the consumer and producer surplus. b) Draw a new supply and demand graph showing the original equilibrium and what happens if major new oil reserves are discovered increasing the production of oil. Label the old and new equilibrium P and Q. c) Draw a new supply and demand graph showing what happens when world economies strengthen so that buyers need more oil.

Explanation / Answer

a. nor mal demand and supply

b. supply shifts leftward.price will increase,quantity will decrease.

c. demand shifts rightward.price and quantity will increase.