Many different variables affect the oil market. Forecast and predict how the following will affect the equilibrium price and quantity of the oil market. Each case should be analyzed through the ceteris paribus (all else equal) conditions. Explain the applicable supply and demand curve movements in your response. Be sure to answer for both price and quantity. (assume an upward-sloping supply curve and downward-sloping demand curve upward) (assume similar elasticities-slopes)(20 total points - 2.5 points each)

A. Fewer fuel-efficient cars.

B. More electric cars.

C. A very warm winter (consider heating oil in your analysis).

D. A peace agreement between warring two oil producers.

E. Exxon finds that oil reserves in Alaska are only 25% what they expected.

F. The price of solar panels increase.

G. New technology allows cars to run on Coca Cola.

H. There is a global expansion (world economies grow).

Answer rating: 100% (QA)

A Fewer fuelefficient cars Price Equilibrium price increases due to increased demand for gasoline from less fuelefficient cars Quantity Equilibrium qu... View the full answer