1.1. Consider the following supply curve for oil.

Note that MBD stands for "millions of barrels per day," the usual way people talk about the supply of oil:

Price of oil per barrel

$50 30 20 15 12 20 Supply of oil 25 30 40 48 Quantity of oil

(MBD)

a. Based on the above supply curve, fill in the table below:

Quantity Price

$12 Supplied 40

b. If the price for a barrel of oil was $15, how much oil would oil suppliers be willing to supply?

c. What is the lowest price at which suppliers of oil would be willing to supply 20 MBD?

Supply and Demand • CHA PTER 3 • 43