dont copy from chegg otherwise i give downvote write answer of all parts in your language for upvote otherwise skip if u dont know all parts solution 2. If oil and natural gas are close substitutes discuss the effect of a negative shock toworld oil supplies as in (1) on field prices, import prices, quantities, and market clearingconditions for natural gas sold in the U.S. under the following conditions:a. Field prices for natural gas produced in the U.S. and prices forimported gas are unregulated. Pipelines pass through the cost of the gas they purchase inthe field in the prices they charge to local distribution companies.b. The field price of natural gas produced in the U.S. is subject to a priceceiling equal to the pre-shock domestic price of natural gas while imported gas prices areunregulated. Pipelines are required to charge the average prices they pay for domesticand imported gas to local distribution companies.c. The pipeline network in the U.S. was operating at full capacity prior tothe supply shock.

In a market, the forces of supply and demand interact to determine prices and quantities that are…

Answered: 2. If oil and natural gas are close…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Ma3. 15) The US. has run down the nation's SPB, Strategic Petroleum Reserve, to levels not seen it since March 1984! At1.0million bbls per day, what was the impact on the global oil price if there was no countermeasure employed by OPEC+? Knowing that Russian oil production has declined and is expected to be1.1million bbls per day less than prewar levels AND the 1.0 million bbls per day that are coming off the market due to the end of the SPB release-let's say in March 2023. What do you expect to happen to the price of oil?
5. There is expectations of higher future prices in the oil and energy market. P Demand .... Supply : ...... Equilibrium Quantity:....... Equilibrium Price : ......
The price of crude oil increased to its highest level due to conditions which impactedsupply. Historically, crude oil has traded at between 70 and 150 USD per barrel. But theprice increased to over 200 USD in March 2022. Growing demand in Canada for crude tobe turned into refined petroleum, coupled with a sharp fall in production in Saudi Arabiahave both been factors in the price increase. Bauxite production in Saudi Arabia for 2017-18 fell 65% year-on-year due to an agreement with OPEC. The Energy InformationAdministration predicts that global consumption of crude oil is likely to be greater thanproduction by 20 million barrels this year.In the US, companies in the steel and alumina industry have put pressure on the USgovernment to relax import controls, warning that otherwise they might run out of petrol.Commentators predict that most steel and alumina producers will be unaffected becausecrude is such a small part of their spending.a. Explain, using supply and demand analysis, why…
Suggest plausible factors which could have an impact on the demand and supply of oil in the near term.o Argue whetheron balance these effects are expected to push oilprices up, down, or keep them stable.o Include diagrams as appropriate.
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The short run market demand and supply for kente cloth are expressed as follows: demand: P=40-0.25Q suppl: P=5+0.05Q marginal cost: -20+4Q answer the following questiong 1. The equilibrium quantity of kente cloth is ...... metres? 2. The equilibrium price of kente cloth is .... rand? 3. The short run level of output is .... metres?
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. Because the demand curve for oil is _________elastic in the long run, OPEC’s reduction in thesupply of oil had a _________ impact on the price inthe long run than it did in the short run.a. less; smallerb. less; largerc. more; smallerd. more; larger

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