Practice Quiz3

Principles of Macroeconomics

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Econ 101: Principles of Economics NAME: Korinna K. Hansen Disc. Section: Practice Quiz 3 Use graphs where necessary, and show your work for the problems below. Be brief, but clear and neat. Make sure that you label all your axes and curves . The US demand for oil is given by Q = 110 - P and the domestic supply of oil in the US is given by: Q = (1/2) P – 5. Prices are expressed in $s per barrel. a). (3 points) What is the equilibrium quantity and price for oil in the US?
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Unformatted text preview: b) (4 points) Graph these demand and supply curves and show the domestic equilibrium quantity and price for oil on the graph. (Be as specific as you can with intercepts). c). (3 points) If the world price for oil is $60 per barrel and there is free trade, do you expect any US exports or imports of oil? Exactly how much? Calculate and show on your graph!...
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