Exhibit 3-5 -Refer to Exhibit 3-5 for the Demand and Supply Model

question 117

Essay

Exhibit 3-5
$\begin{array}{|c|c|c}\hline \begin{array}{c}\text { Price per } \\\text { Barrel }\end{array} & \begin{array}{c}\text { Quantity } \\\text { Demanded }\end{array} & \begin{array}{c}\text { Quantity } \\\text { Supplied }\end{array} \\\hline \$ 50 & 725 & 900 \\\hline \$ 49 & 745 & 885 \\\hline \$ 48 & 775 & 840 \\\hline \$ 47 & 800 & 800 \\\hline \$ 46 & 830 & 750 \\\hline\end{array}$

-Refer to Exhibit 3-5 for the demand and supply model of the world oil market (in millions of barrels per day).
(A) I5 there a shartage or suplus of al at a price of $48.]D per barrel? Why? What is the quantity of shortege ar suplus?
(B) Is there a shortage ar swplus of ail at a price af 46 per barel? Why? What is the quantity of shartage or suplus?
(C) What is the equilibrium price and quantity in this market?

---

Definitions:

Amboid Gearing

A type of gear configuration that allows for the conduction of power through non-parallel and non-intersecting shafts, typically found in certain differential designs.

Torque Proportional Differentials

Torque proportional differentials, also known as limited-slip differentials, are drivetrain components that distribute torque to the wheels, allowing them to rotate at different speeds while providing improved traction.

Truck OEM

Original Equipment Manufacturer specializing in the production and design of trucks, providing the initial equipment and parts.

Navistar International

An American holding company that owns the manufacturer of International brand commercial trucks, buses, defense vehicles, and engines.