The consumers in the United States and Europe reduce their demand for oil. If the price of oil were to remain unchanged, this reduction would equal 10% of the world’s consumption of oil. However, the price of oil does change. Assume that the price elasticity of the demand for oil is, in absolute terms, 0.25 and the price elasticity of supply is also 0.25. How much, in percent terms, will the price of oil change by?

How much will the production of oil then change by?