An article in the Wall Street Journal notes that although U.S. oil production has increased rapidly in

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An article in the Wall Street Journal notes that although U.S. oil production has increased rapidly in recent years, the increase has still amounted to only 5 percent of world production. Still, that increase has been “enough to help trigger a price collapse.” Briefly explain under what circumstances a small increase in supply can lead to a large decline in equilibrium price.

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Economics

ISBN: 978-0134738321

7th edition

Authors: R. Glenn Hubbard, Anthony Patrick O Brien

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