In the last few months, internal conflict in Syria has negatively affected their oil production capacity, resulting

Fantastic news! We've Found the answer you've been seeking!

Question:

In the last few months, internal conflict in Syria has negatively affected their oil production capacity, resulting in a sharp rise in the price of oil on the world market.
a) Use the market model to illustrate what has happened in the oil market. [5 points]
b) How and why have users of oil reacted to the developments in the oil market? Be sure to
show and describe that reaction in your diagram of the market model. [3 points]
c) Oil being currently the main source of energy production, what do you expect to happen in the oil market when cheap alternative energy sources, such as renewables, become more widely available?