1. Predict how each of the following events will increase or decrease the equilibrium wage and quantity of oil workers in Texas.

a. The price of oil rises. (2 points)

b. New oil-drilling equipment is invented that is cheap and requires few workers to run. (2 points)

c. Several major companies that do not drill oil open factories in Texas, offering well-paid jobs outside the oil industry. (2 points)

d. Government imposes costly new regulations to make oil-drilling a safer job. (4 points)