Use a supply-and-demand diagram to demonstrate how each of the following events affects the market for oil.

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Use a supply-and-demand diagram to demonstrate how each of the following events affects the market for oil. Be sure to show and explain what happens to the equilibrium price and quantity of oil.

a. Political unrest breaks out in the Middle East.

b. A global recession hits.

c. A bad hurricane hits states along the Gulf of Mexico.

d. Oil prices are expected to rise in the future.

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Microeconomics

ISBN: 978-1429283434

3rd edition

Authors: Paul Krugman, Robin Wells

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Question Posted: Jan 24, 2018 06:26 AM

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Use a supply-and-demand diagram to demonstrate how each of the following events affects the market for oil.

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a Political unrest in the Middle East affects the production and transport of oil to the rest of the ...View the full answer

Microeconomics

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