When Iraq invaded Kuwait,the market price of crude petroleum jumped from $21.54 per barrel to $30.50 per barrel-an increase of almost 42 percent.Your boss is puzzled,because the price increase actually occurred before there was a physical reduction in the current amount of oil available for sale.
a.Explain why the price of oil increased so rapidly.
b.One year after the invasion,the price of oil fell to $21.32 per barrel,its prewar level.Explain why.

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The Answer of When Iraq invaded Kuwait,the market price of crude petroleum jumped from $21.54 per barrel to $30.50 per barrel-an increase of almost 42 percent.Your boss is puzzled,because the price increase actually occurred before there was a physical reduction in the current amount of oil available for sale.
a.Explain why the price of oil increased so rapidly.
b.One year after the invasion,the price of oil fell to $21.32 per barrel,its prewar level.Explain why.

When Iraq Invaded Kuwait,the Market Price of Crude Petroleum Jumped