A war in the Middle East takes the most cost efficient oil fields out of production for several years. Describe what would happen to the oil market during the war.
A tanker runs aground in Alaska, cutting off 5 percent of the world’s oil supply. At the same time, the Federal Aviation Administration announces that all passenger planes currently flying for commercial airliners in this country are three times more dangerous than previously thought. Given this, using supply and demand analysis, what will happen to the equilibrium price and quantity of flights flying out of State College?
GE introduces a new solar panel design that allows solar farms to produce energy even when it’s dark outside (don’t ask how… that’s their problem). This phenomenal discovery yields energy at a cost of $10 per MWh, less than half the cost of coal-generated electricity. Describe what would happen to the market of coal-generated electricity.