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Suppose That the Short-Run World Demand and Supply Elasticities for Crude

Question 139

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Suppose that the short-run world demand and supply elasticities for crude oil are -0.076 and 0.088, respectively. The current price per barrel is $30 and the short-run equilibrium quantity is 23.84 billion barrels per year. Derive the linear demand and supply equations.

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If the demand curve is linear, it is in ...

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