In 2011 oil production in Libya was interrupted by political unrest. At the same time, the demand for oil by China continued to
rise.
Required:
a. Demonstrate the impact on the quantity of oil bought and sold.
Instructions: Draw a parallel shift in the demand or supply curve(s) by grabbing, dragging, and then dropping the curve(s) to the new position(s).
b. Oil production in Libya returned to its original levels by the end of 2012. What was the likely effect on equilibrium oil price and quantity?
Required:
a. Demonstrate the impact on the quantity of oil bought and sold.
Instructions: Draw a parallel shift in the demand or supply curve(s) by grabbing, dragging, and then dropping the curve(s) to the new position(s).
b. Oil production in Libya returned to its original levels by the end of 2012. What was the likely effect on equilibrium oil price and quantity?
1 answer:
Answer:
As a result of the political unrest in Libya, the supply of oil would fall, As a result the supply curve would shift to the left. This would lead to fall in equilibrium quantity and a rise in price.
The increased demand for oil would shift the demand curve to the right. The equilibrium price and quantity would increase
Taking these two effects together, equilibrium price would rise and there would be an indeterminate effect on equilibrium quantity
Please check the attached image for a graph showing these shifts
b. As a result of the change in supply, supply would increase. This would increase equilibrium quantity and equilibrium price would fall. in addition with the increase in demand for oil, equilibrium quantity would rise and there would be an indeterminate effect on equilibrium quantity
Explanation:
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Answer:
acid-test ratio 1,4044
Explanation:
We are asked for a variation ofthe current ratio
whie current ratio is determinate like:
the acid-test will remove inventory from the current assets, leaving only cash, marketable securities and accounts receivables considered for the calculations:
191,000 current assets - 85,000 inventory = 106,000
136,000 current liabilities
191,600 / 136,000 = 1,4044