Answer these 7 questions.Just write a letter and explain where demand and supply shifts and why.

Aunao't 5. The crude oil market is currently in equilibrium at point X as shown in the diagram where DD is the demand for oil and SS is the supply of oil. The effect of a rise in real incomes combined with the introduction of more eicient extraction methods in the industry, would move the equilibrium to which point labelled A to D? Price of oil Quantity of oil demanded/supplied per period Answer I: (1) q Explanation ............................................................................................................................ ................................................................................................................................................. ------------------------------------------------------------------------------------------------------------------------------------------------- Jan 02 8. The diagram below shows the market for gold. The initial market equilibrium is point X. The Bank of England has recently been engaged in reducing the size of its gold stocks by sales on the open market. Meanwhile the manufacture of gold jewellery in India, the world's largest producer, has been disrupted after a recent severe earthquake. What will be the new equilibrium (A, B, C or D) following the events above? Price of gold S2 D S1 DI S3 D3 Sz . Dz D, Quantity of gold demanded and supplied per time period Answer (1) Explanation . . ...June. 0 (_ The diagram below shows the market for beef. The initial equilibrium position in the make: is indicated by point X. What will be the new equilibrium (A, B, C or 1)) following a signicant increase in the demand for leather and new health warnings against the consumption of beef? Price ' m [:J (1) oooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo 5. The market for a luxury good is in equilibrium at point X, where S,S, is the supply of the good and D,D, is the demand for the good. Following a decrease in real incomes and the exit of some firms from the industry, what will be the new long-run equilibrium (A,B,C or D) ? Price S2 D3 D1 S3 D2 D A B S2 S1 D3 S3 D1 D2 O Quantity demanded/supplied per time period Answer (1) Explanation8. The diagram below relates to the housing market in a region of relatively high unemployment. Assume the initial equilibrium is at point X. S2 D, Do So Price of housing D2 h A X D Quantity of housing demanded/supplied per period If a multinational company announces the building of a factory to employ 3,000 workers and the cost of building materials in the region falls sharply, which of the points labelled A to D on the diagram would indicate the new equilibrium position? Answer (1) Explanation7. The diagram below refers to the market for tea. The initial equilibrium position in the market is indicated by point X. What will be the new equilibrium (A, B, C or D) following a lack of essential rainfall in the tea growing regions in Asia and a successful advertising campaign to promote coffee drinking? S2 Price of tea (f) SI S3 .V 14 C D2 DID3 Quantity of tea demanded/supplied per period Answer (1) ExplanationJune 3. The diagram below shows the UK labour market for building workers. The initial equilibrium position is indicated by point X. The enlargement of the European Union attracts building workers from Eastern Europe and at the same time an increase occurs in the demand for housing. What is likely to be the new equilibrium position: A, B, C or D? Hourly wage (f) S1 S $2 A D X B 2 V D2 D, D 0 Quantity of building workers Answer (1) Explanation