Oil prices over the past several years have trended upward in global markets. Some analysts argue that

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Oil prices over the past several years have trended upward in global markets.

Some analysts argue that the increase is because of the growth in the economies of India and China.

a) Use the supply-and-demand model to show and explain how improved economic conditions in these two countries could explain the rise in oil prices.

b) Now use your answer in part

(a) to analyze the impacts on the U.S. market for SUVs.

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