What is your advice to return to the equilibrium situation

Assignment Help Mathematics

Reference no: EM131123421

Suppose that you have been hired as an economic consultant by OPEC and given the following schedule showing the world demand and supply for oil.

Price ($/barrel)	Quantity Demanded (millions of barrels/day)	Quantity Supplied (millions of barrels/day)
10	60	20
20	50	30
30	40	40
40	30	50
50	20	60

Your advice is needed on the following questions (use the diagram):

1- What is the price, quantity of supply and quantity of demand in equilibrium situation?

2- If the price raises from $20 to $30 a barrel, will the total revenue from oil sales increase or decrease?

3- What are the values of the price elasticity of booth demand and supply for price changes from $20 to $30 a barrel?

4- If the price of oil degrease from equilibrium price $30 to new price $20 then:

- What do we call the gap between the quantity demanded and quantity supplied?

- What is its value?

- What is your advice to return to the equilibrium situation?

Reference no: EM131123421

Questions Cloud

Business management paper : In this paper, students will analyze and discuss small business growth in terms of growth strategy, business forms, short and medium term goals, financing assistance, organizational structure and staffing needs, customers and promotion, and ethic..

Which of them is an indirect benefit of improved quality : Within a typical behavioural model of job design, which of the following would be considered as representing core job characteristics?

How many different ways can the delegate be selected : UMUC Stat Club is sending a delegate of 2 members to attend the 2015 Joint Statistical Meeting in Seattle. There are 10 qualified candidates. How many different ways can the delegate be selected?

Assignment on research paper proposal : A research proposal is an overview of the argument contained in your working thesis statement, sometimes called a hypothesis. It is not based on research, but on what you already know, or think you know, about your topic.

What is your advice to return to the equilibrium situation : What is your advice to return to the equilibrium situation?

Puritan rectitude and quaker benevolence : This Unit's topic highlights the writings of two of Colonial America's preachers, each one representative of a particular theology, and each worldview having an immense impact on American culture today, as well as then.

How this could be applied in other real-world applications : Explain the theory developed including capacitated s,t graphs and the lexicographic ordering rule based on the case study and suggested readings. Give an example of how this could be applied in other real-world applications.

Determine whether probability experiment represents : An experimental drug is administered to 50 randomly selected individual, with the number if individuals responding favorably recorded.

Calculate the direct materials price and quantity variance. : Calculate the direct materials price and quantity variance. Direct-material purchase price variance should be based on material purchased, since you want to isolate the variance as soon as possible

User Account

All Pages