1. What has happened to the price of crude oil in 2015? What has happened to the demand for crude oil in 2015? Is there an economic theory that supports this relationship? Support your answer with a diagram.
2. In the last 6 months of 2015 oil prices fell by 30% and oil demand has risen by 2%. Based on this data what type of price elasticity does oil demand have?
3. Do you agree with the opinion expressed in Source 1 on the price elasticity of demand? Why or
4. Would you advise an oil producer to increase oil prices or decrease oil prices based on your
analysis in previous questions? Explain and justify your answer with a diagram.
5. Based on Source 2 how would the price elasticity of supply have changed since the introduction
of shale oil production in 2008? Support your answer with economic theory.