a. On a graph, show the supply and demand for oil. Indicate the equilibrium price and...
a. On a graph, show the supply and demand for oil. Indicate the equilibrium price and quantity. Is this quantity efficient?
b. On a new graph of the market for oil, show what will happen to the equilibrium price and quantity if a vast new oil field is discovered off the coast of Australia.
c. On another graph, show what will happen in the market for oil if a new electric car is invented which is cheaper, faster and cooler looking than a gas car and has a solar panel on the roof that allows it to drive forever without charging the battery.
Homework Answers
Solution:a.
b.
c.
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