BBM102/03: Draw a demand and supply graph for the global market for crude oil and Explain the effects of the Russian-Ukraine war on market price: Microeconomics Assignment, WOU, Malaysia

 Question 1

• Draw a demand and supply graph for the global market for crude oil.
• Explain the effects of the Russian-Ukraine war on market price and quantity of crude oil.
• Using an appropriate demand-supply diagram, discuss how global crude oil prices might affect the market for vegetables in Malaysia.
• To protect consumers from fluctuating prices of vegetables, the government considers price control policies. Provide an example of a useful price control policy that can prevent prices from rising further. Explain the effects of this price control policy on the market?

Question 2

• The 5^th and 6^th columns of the table are deliberately left empty. Calculate the average cost associated with each level of production and complete the 5^th column of the above table
• Calculate the profits associated with each level of production, and complete the 6^th column of the table
• Identify which production level maximizes profits.
• Explain the type of market structure that this manufacturer might be operating in.
• Elaborate on the possible outcome that can happen in the long run if this manufacturer continues making profits
• Suppose that this manufacturer discovers a new technology that reduces labor costs significantly. We now have new information in the table below

Calculate the new average cost and total profit and complete the table

• Sketch the new Average Cost function from the table and comment on the graph
• If this new situation persists, explain what might happen to the industry in the future?

Answer

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