Suppose That a Technological Breakthrough Allow Oil Producers to Extract

question 11

Essay

Suppose that a technological breakthrough allow oil producers to extract oil reserves previously unavailable. Use a diagram to show the effect this discovery would have over the long run price path of oil. What would be the effect this would have over the price of alternative sources of energy such as solar and so forth.

---

Definitions:

Amount Owed

The total sum of money that is due to be paid to another party or lender.

Appraised

The process of professionally evaluating the value of a particular piece of property, such as real estate or a collectible.

Offered for Sale

Products or services made available to customers for purchase.

Buyer Pays

A term indicating that the purchaser is responsible for the cost of shipping and insurance during transportation of goods.