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ESR 102
Unit 4 - Application Assignment

Due: by midnight Monday, March 15, 2004. Please submit by e-mail with ESR 102 as the subject line.

Points: 5

Problem statement: Consider the following figure related the economics of oil in the United States.

1. Explain the relatioship between Demand (D), Supply (S) and Price (P). 1 point

2. What circumstances could shift or move the Demand (D) curve down and what would be result in relationship to Supply, Price and Quanity (Q). 2 points

3. If the US government wanted to help combat Global Warming, what actions could it take to affect the Demand curve and affect the Supply curve. Explain your reasoning and it would affect Global Warming. 2 points