Select a news article dated within the previous two months and analyze the issue using the economic...

Question

Select a news article dated within the previous two months and analyze the issue using the economic concepts and theory learned in this class. Include at least one graph developed in our course. Possible concepts include:

taxes and consumer or producer surplus
demand, supply, and equilibrium price of a particular product
elasticity on a particular product
perfect competition and imperfect competition, such as monopolies
labor market, wages, and income inequality
poverty and public policy
another topic selected by the professor

Format of the Paper:

The Term Paper must be posted to the LEO Student Assignments as a Attachments are limited to a maximum two files in doc, docx., xls. xlsx., or rtf. formats. OTHER FORMATS ARE NOT ACCEPTABLE, will not be reviewed or graded.

The Term Paper should be about 3-5 or more double-spaced typewritten pages (without tables and graphs)

David · Accepted Answer

Like all commodities, the price of oil is also dependent on the demand and supply forces. As 
a result, due to change in the supply and demand forces, there is a revision of price and it 
typically takes place in the real time. This happens when there is some news which 
potentially can alter the likely demand and supply of oil.  In order to understand the basic 
dynamics of this market, it is essential to pay consideration to the economic concept of 
demand and supply along with equilibrium price. 
As a result, whenever, there is an increase in the demand of crude oil and related products ( 
petrol, diesel, kerosene etc.), the demand curve tends to shift to the right. In the process, the 
equilibrium price tends to increase and then the crude oil tends to have a higher price. This is 
indicated through the following graph.
On the other hand, if there is a decrease in the demand of crude oil and related products ( 
petrol, diesel, kerosene etc.), the demand curve tends to shift to the left. In the process, the 
equilibrium price tends to decrease and then the crude oil tends to have a lower price. This is 
indicated through the following graph.
Further, whenever, there is an increase in the supply of crude oil and related products (petrol, 
diesel, kerosene etc.), the supply curve tends to shift to the right. In the process,

Select a news article dated within the previous two months and analyze the issue using the economic concepts and theory learned in this class. Include at least one graph developed in our course....

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