Protecting Middle East oil supply costs $1 a gallonl.

Sites to Visit for More Information:

1. OPEC
2. European Renewable Energy Council
3. International Energy Agency

Questions:

1. How is the price of oil determined in the world market?
2. If the supply of oil from the Middle East decreases what happens in the world oil market to the
   i. quantity of oil demanded?
   ii. quantity of oil supplied?
   iii. supply of oil?
   iv. demand for oil?
3. Show on a diagram the effect of an increase in the cost of protecting our oil supply.
4. What effect would the development of a renewable replacement for oil have on the
   i. quantity of oil demanded.
   ii. quantity of oil supplied.
   iii. supply of oil.
   iv. demand for oil.

Chapters: 3

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