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Discuss the determinants of the price elasticity of demandfor oil, and explain whether demand and supply for oil is elastic or inelastic. Based on your discussion of elasticity, illustrate the effect of price drop on the total revenue of a typical oil producer

Smart Writing ServicesOctober 25, 2017 7:43 amOctober 25, 2017

Previous ArticleUse demand and supply models to illustrate what determinants have led the plummet of oil price. Make sure that you articulate the impact of the following factors: a. summer season; b. OPEC’s decision to maintain the output; c. Slowdown of world economy; d. technology advance in improving fuel efficiency and developing alternative fuel; e. increase in production in AmericaNext ArticleAssuming that the government has decided to intervene and introduced a floor on prices. Illustrate the likely impact of such government intervention on the market. Conclude your analysis with comments on the benefits and drawbacks of the government's price support policy