a. Discuss, with the use of graphs, the effects that an increase in world output of oil would have on the price and demand for each of the following: oil, coal, cars and electricity.
b. Explain, with the use of graphs, what will happen to consumer and producer surplus with an increase in world output of oil. Include in your answer an explanation of the concepts of consumer surplus and producer surplus.
22) a. Define the different types of ‘market failure'.
b. Explain the rationale behind the possible introduction of a pollution tax.
23) a. Explain and give an example of three different types of unemployment.
b. Propose some policies to alleviate unemployment.
c. Starting from a deflationary gap position use the aggregate demand and aggregate supply model with graphs to demonstrate how the government could return the economy to equilibrium.