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Learning Goal: I’m working on a micro economics writing question and need an explanation and answer to help me learn.Read the Wall Street Journal article on “Biden and the Oil Industry Are at Odds, Clouding Effort to Tame Gasoline Prices” attached below:https://www.wsj.com/articles/biden-and-the-oil-industry-are-at-odds-clouding-effort-to-tame-gasoline-prices-11646838614 (Links to an external site.)(You need to create an account with your student email to access the article. The account is free with your CSUF email.)Paragraph 1: Introduce the article and its main topics.Paragraph 2: In some detail, describe what were the factors behind the first increase in gasoline prices.Paragraph 3: Analyze the supply and demand curves in the market for oil in the US after US cuts ties with Russian oil companies.When drawing the demand: What kind of elasticity is the demand for oil? What does it look like?
When cutting ties with Russian oil companies, does that affect supply or demand? Does the curve shift to the left or right?
What happens to equilibrium price and quantity?
What will happen to total revenue for the remaining companies in the market?
Please draw the simple graph and attached it to the assignment.Paragraph 4: Suppose prices for oil increased from $5/gallon to $10/gallon, and that the quantity sold decreased from 750,000 gallons to 500,000 gallons, due to the cut in Russian oil.What is the price elasticity of demand?
What kind of elasticity is this? Discuss how you arrived at your answer.
Does this elasticity match your assumption in paragraph 3?
Paragraph 5: Conclusion: what is your economic prediction of what will happen to gas prices in the future?Format DetailsFont: ArialFont Size: 12Paragraph: Single Line SpacingThe written portion should not be longer than one page.Graphs must be properly labeled and clearly drawn out.Graphs must be included in the written document. You can only submit one file.No need for a work cited page.
Requirements: 5 paragraphs
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