Homework Clinic
Social Science Clinic => Economics => Topic started by: skymedlock on May 25, 2020
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The following diagram shows the demand for and supply of oil. The supply and demand curves are initially given by S0 and D0. The market is in equilibrium at point x. There is then a recession accompanied by political tensions in certain oil producing countries that adversely affect oil production. As a result either or both the demand and supply curves shift to one of the new positions shown in the diagram. What will be the equilibrium position on the diagram?
◦ Point r
◦ Point n
◦ Point p
◦ Point m
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Point r