(4) A study estimates that the long-run global price elasticity of demand for oil is -0.4, and the long-run supply elasticity is about 0.3 . In mid-2012, the price of a barrel of oil was roughly $100, and global production was about 82 million barrels per day. At the time, the U.S. government was considering opening up drilling in a previously unexploited reserve on government land. The Department of Energy predicted that production from this reserve, if exploited, would be 800,000 barrels per day. (a) On an assumption that global demand and supply for oil are both linear, estimate the long- run relationships between the per barrel price of oil and the daily quantities demanded and supplied prior to this reserve being exploited. That is, generate algebraic representations of the demand and supply curves. Show your work clearly. (b) Use your answers to (a) above, to generate an estimate of how the price and quantity (produced and consumed daily) in the market will change if the reserve on the government land is exploited. That is, what will be the new price per barrel and how much oil will be produced and consumed globally per day? Again, show your work clearly