Problem
Suppose that large oil reserves are discovered off the coast of Cuba, and these reserves will increase the world's supply of oil by 2 percent. If the elasticity of demand and supply of oil are -0.20 and 0.40, respectively, what happens to the price of oil?
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.