Problem
1. Suppose that an African nation unfriendly to the U.S. has a huge oil strike, and sells to anyone except the U.S. How will this affect oil supplies reaching the U.S.? How much could the U.S. gain by making political concessions to the oil-rich country in order to buy the oil? Use a supply-demand diagram for the world oil market in writing an explanation of why the U.S. might gain nothing from such concessions, so long as a worldwide market for oil exists.
2. Are some of the instances of price responsiveness cited in the text surprising? Can you explain why they surprise many people, but not so many who have studied microeconomics?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.