10:12
- nccu.instructure.com,
10
Assignment \#2.docx
Assignment \( H_{2} \)
Chapter 3
1. Revier the following figure. Suppose the price of gasoline is \( \$ 1.60 \) per gallon. That would heppen to the quantity demanded? What sould bnppen to the quantity supplied? Is the market in equilibrium, a shortage, or a surplus?
2. Many changenl are affecting the market for oil. Predict hov each of the following events wil1 affect the equilibrium price and quantity in the market. for oi1. In each case, sketch a supply and demand diagram to support your anumer.
a. Care are becoming more fuel efficient, and therefore get more miles to the gallon.
b. The *inter is exceptionally cold.
c. A ma,jor discovery of new oil is nade off the coast of Norvay.
d. The econonien of sone mnjor oil-uwing nationn, like Japnn, slow down.
e. A var in the Middle Eost disrupts oil-pumping schedales.
f. Landlords install additional inaulation in buildings.
g. The price of solar energy falls dranatically.
h. Chemical companies invent a new. popular kind of plastic made frca oi1.
3. Let \( { }^{\prime} \) = think about the market for air trave1. Froa 2009 to 2012, the price of jet fuel incrensed roughly 84\%. Using the four-step analysis, how do you think this fuel price increase affected the equilibrium price and quantity of air trave1?
Please sove your work in words or pdf before uploading on blackboard.
This assignment is due on July 10, 2024, at 11:59 PM.
