4. Say that equilibrium price remained constant and quantity fell. What would you say was the most likely cause?
There was (INCRESE, DECLINE, NO CHANGE) in demand and (INCRESE,DECLINE,NO CHANGE) in supply.
6. In 2011 oil production in Libya was interrupted by political unrest. At the same time, the demand for oil by China continued to rise.
a. Demonstrate the impact on the quantity of oil bought and sold.
In the market for oil, compared to the initial equilibrium (E0), the impact of these events on price is _____ and the impact on quantity is ____
b. Oil production in Libya returned to its original levels by the end of 2012. What was the likely effect on equilibrium oil price and quantity?
Compared to the equilibrium identified in part a, price will ____and quantity will ___