Complete the following problems and provide answers, analysis, and insight into the concepts presented in each problem. Your analysis should also provide examples of the concepts presented in each problem. You should develop a 3-page, APA-formatted paper, providing responses and information related to:
2. Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. In each case, sketch a supply and demand diagram to support your answer.
Cars are becoming more fuel efficient, and therefore get more miles to the gallon.
The winter is exceptionally cold.
A major discovery of new oil is made off the coast of Norway.
The economies of some major oil-using nations, like Japan, slow down.
A war in the Middle East disrupts oil-pumping schedules.
Landlords install additional insulation in buildings.
The price of solar energy falls dramatically.
Chemical companies invent a new, popular kind of plastic made from oil.
2. From the data shown in the table below about demand for smartphones, calculate the price elasticity of demand from: point B to point C, point D to point E, and point G to point H. Classify the elasticity at each point as elastic, inelastic or unit elastic.
*Please refer to the Grading Criteria for Professional Assignments in the University Policies for guidelines and expectations.
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Greenlaw, Steven A. & Shapiro, David. (2020). Principles of microeconomics (2E). OpenStax.
https://d3bxy9euw4e147.cloudfront.net/oscms-prodcms/media/documents/Microeconomics2e-OP.pdf
