Microeconomics

Table of Contents

1. Topic pack - Microeconomics - introduction
2. 1.1 Competitive Markets: Demand and Supply
3. 1.1 Competitive Markets: Demand and Supply - notes
4. 1.1 Competitive markets - questions
5. 1.1 Competitive markets - simulations and activities
6. 1.2 Elasticities
7. 1.2 Elasticities - notes
8. Section 1.2 Elasticities - questions
   1. PED - short-answer
   2. Price, income and cross elasticity - self-test questions
   3. PES - short answer
   4. Inflation soars for staple foods
   5. Elastic iPods
   6. DaVinci scandal exposes tacky Chinese nouveau tastes
   7. Keep on boating
   8. Coffee prices remain high
   9. SUV's - cross elastic?
   10. Oil Prices
   11. Scare tactics lift prices for smokers
9. Section 1.2 Elasticities - simulations and activities
10. 1.3 Government intervention
11. 1.3 Government Intervention - notes
12. 1.3 Government intervention - questions
13. 1.3 Government intervention - simulations and activities
14. 1.4 Market failure
15. 1.4 Market failure - notes
16. Section 1.4 Market failure - questions
17. Section 1.4 Market failure - simulations and activities
18. 1.5 Theory of the firm
19. 1.5 Theory of the firm - notes (HL only)
20. Section 1.5 Theory of the firm - questions
21. Section 1.5 Theory of the firm - simulations and activities
22. Print View

Oil Prices

Oil prices are frequently described as being volatile. They are subject to large variations in prices over time. In the first three months of 2011, Brent crude oil was quoted in the news as being up 28%.

Question 1

What factors are likely to affect the price of crude oil?

Question 3

Draw demand and supply diagrams to show the effect of:

1. Rising US demand for oil
2. OPEC relaxing quotas on oil to try to prevent the oil price rising further
3. Civil unrest in Libya, Bahrain and Syria

Question 4

What would you expect the value of the price elasticity of demand for oil to be? Explain your answer.

Question 5

Analyse the impact that the higher oil price is likely to have on:

1. Individual national economies
2. The global economy