What pricing model we have considered best represents market

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The recent drop in the price of gasoline and oil has had several effects on the US economy.

(a) What pricing model we have considered best represents the market for oil? Defend your answer.

(b) Use your model to explain how a moratorium on fracking in the US would influence world price and output.

(c) What type of market inefficiency does air pollution represent? How would you propose reducing it? Demonstrate with a graph.

Reference no: EM13834773

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