Consumers due the oil import quota the output curtailment opec
Question 1
APPLICATION OF DEMAND AND SUPPLY MECHANISM
barrel)
3.00
In 1973, when government officials became increasingly concerned about impending fuel shortages, opposition to the oil import quota mounted. Finally, in April 1973, President Nixon announced that he was suspending direct control over the quantity of crude oil that could be imported. The oil import quota was dead.
(a) The graph (please the attachment) shows the 1968 supply curve for domestically produced petroleum, the supply curve for foreign produced petroleum, and the demand curve for petroleum in the United States. On the basis of this graph, was foreign oil (much of it from the Middle East) cheaper to produce than U.S. oil?
Qs = 17 + 0.25P,
whereas after the curtailment is Qs= 14 + 0.25P.
(g) What was the equilibrium quantity of crude oil demanded and supplied before OPEC curtailed its output? What was it afterward?
(h) The above equations represent the short-run effects of OPEC’s action, not the long-run effects. In the long run, the price elasticity of demand for crude oil was about 0.4. Was this greater or less than the price elasticity of demand for crude oil in the short run if the price was $10 per barrel? Why?
Capital (units of |
Labour (units of 50 persons) | |||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | |
| 3 | 40 | 90 | 140 | 170 | 180 | 185 |
| 4 | 60 | 120 | 180 | 220 | 230 | 236 |
| 5 | 100 | 170 | 230 | 250 | 260 | 268 |
| 6 | 170 | 200 | 240 | 270 | 280 | 289 |
(a) Plot the short run ATC curves suggested by the production function and input cost figures.
(b) Comment on the economies and diseconomies of plant size (if any) which are evident in your graph.
Why small towns tend to support general surgeons but not specialized surgeons
Physicians may practice general medicine or specialty medicine. Generalists and specialists differ in both the amount of training they receive and the skill with which they practice. Take the case of surgery. To become general surgeons, medical school graduates spend three to four years in a surgical residency. They are then qualified to perform a wide variety of surgical procedures. Because their training is broad, general surgeons do all kinds of surgery with good, but not necessarily great skill.
Question 4
TRANSPORATION ELASTICITIES
-And per capita vehicle ownership is lower by almost 20% in the UK.
(i) How relevant are these information and how will you use them?
