The United States produced a little more than nine million barrels of oil a day in 2017.
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The United States produced a little more than nine million barrels of oil a day in 2017. If market supply and demand for oil is as given in the accompanying graph show what happens if the government imposes a maximum quota of 6 million barrels per day. What will happen to the price of oil in this market?
Suppose that electric cars become significantly more prevalent in the market. As a result, what would happen to the demand curve for oil? Is it possible that the quantity restriction imposed by the government will no longer become relevant in this market?
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