Shale gas and oil technology innovation of 2014 has increased the world supply of cru
Shale gas and oil technology innovation of 2014 has increased the world supply of crude oil, and the retirement of baby boomers starting in 2013 (along with stagnation in Japan and Western Europe, and slow-down of growth in china) is serving to reduce global demand for crude. What do you expect will happen in his market for crude oil as a consequence?
a. Equilibrium price will arise, but the effect on quantity traded is uncertain
b. Equilibrium price will fall, but the effect on quantity traded is uncertain
c. Equilibrium quantity traded will arise, but the effect on equilibrium price is uncertain
d. Equilibrium quantity traded will fall, but the effect on equilibrium price is uncertain
e. Equilibrium price and quantity traded will both fall