Question: Oil prices have recently risen as tankers are now avoiding the Red Sea route because of drone strikes. Discuss how this affects consumer surplus, producer

Oil prices have recently risen as tankers are now avoiding the Red Sea route because of drone strikes. Discuss how this affects consumer surplus, producer surplus, and total surplus in a country that is a net exporter of oil. Also, assume this country was not using the Red Sea route to export its oil. In providing your answer, you do not need to provide numbers or letters, just the direction of the effects.

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A rise in oil prices has been caused by tankers avoiding the Red Sea due to drone strikes This will impact a net oilexporting nation in several ways To understand these effects on consumer surplus pro... View full answer

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