Question: Please refer to the background information below to answer the following two questions. At the initial equilibrium, the price of oil is 64 dollars per

Please refer to the background information below to answer the following

Please refer to the background information below to answer the following two questions. At the initial equilibrium, the price of oil is 64 dollars per barrel and the quantity is 8000 barrels per day. The price elasticity of demand for oil is 1.6 and the price elasticity of supply is 0.87. Because of a recent eruption of war, quantity supplied is expected to decrease by 320 barrels per day at any given price. 32. Given this information, we predict that the equilibrium price will [ Answer32A ] (A. increase, B. decrease) by [ Answer32B ]%. 33. In addition, we predict that the equilibrium quantity will [ Answer33A ] (A. increase, B. decrease) by [ Answer33B ]%. Please refer to the background information below to answer the following two questions. The demand for good a: satisifes the following relation (where \"In\" is natural logarithmic function): A 11" nn 1 n nD-r 1 n ('11 /- \\')

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