What would be the effect of ANWR production on the world price of oil given that e -050. n=0.40, the pro-ANWR daily world production of oil is Q, 82 million barrels per day, the pre-ANWR world price is p, =5100 per barrel, and daily ANWR production would be 0.8 million barrels per day? For simplicity, assume that the supply and demand curves are linear and that the introduction of ANWR oll would cause a parallel shift in the world supply curve to the right by 0.8 million barrels per day Determine the long-run linear demand function that is consistent with pre-ANWR world output and price. The long-run demand function is Q123-0.41p Determine the long-run linear supply function that is consistent with pre-ANWR world output and price. The long-run supoply function is Q= 49 2+0.328p Determine the post-ANWR long-run linear supply function

What would be the effect of ANWR production on the world price of oil given that e -050. n=0.40, the pro-ANWR daily world production of oil is Q, 82 million barrels per day, the pre-ANWR world price is p, =5100 per barrel, and daily ANWR production would be 0.8 million barrels per day? For simplicity, assume that the supply and demand curves are linear and that the introduction of ANWR oll would cause a parallel shift in the world supply curve to the right by 0.8 million barrels per day Determine the long-run linear demand function that is consistent with pre-ANWR world output and price. The long-run demand function is Q123-0.41p Determine the long-run linear supply function that is consistent with pre-ANWR world output and price. The long-run supoply function is Q= 49 2+0.328p Determine the post-ANWR long-run linear supply function

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.6P

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