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Using a supply and demand diagram starting at equilibrium show what happens in the oil market given the following information. (make sure to show clearly and shifts and new equilibrium price and quantity). Graph and model each one independently.
1. The rising tensions in the Middle East destabilize the region and ISIS seizes control of major oil production sites.
2. An increase in overall in come for American and European households.
3. Saudi Arabia announces an increase in production of oil for 2016.
4. Consumers change their preferences and buy more fuel efficient cars.
study for midterm
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