6 10 Marks Suppose Market Demand For Oil Is Q P 100 0 75p Where Q Is Billions Of Barrels Bbl Or Oil Per Year And 1 (32.46 KiB) Viewed 32 times
6 10 Marks Suppose Market Demand For Oil Is Q P 100 0 75p Where Q Is Billions Of Barrels Bbl Or Oil Per Year And 2 (32.77 KiB) Viewed 32 times
6. (10 Marks) Suppose market demand for oil is Q(P) = 100 -0.75P where Q is billions of barrels (BBL)or oil per year and P is price per barrel where, MCO) = 30 There is a total of 100 BBL of oil available to use in periods 0 (current year) and I (next year). Assume the interest rate is 5%. What is the revenue-maximizing quantities of oil to extract in each period? What are the corresponding prices? What is the CS, PS, SW in each period? Show that this solution maximizes social welfare.
4. (5 Marks) Suppose there are two major Nuclear Energy Markets, U.S.A and Russia. The following are their MB function for reducing carbon MBUSA = 650 - 5QUSA MB Russia = 400 -3.330 Russia MC = 100 for both markets a. Derive the aggregate demand function. b. What is the efficient reduction in carbon? Show all your work E
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