1.A.If the price of crude oil falls

i.The profits of oil refineries will increase

ii.Employment in the manufacturing sector will fall

iii.Iran will go to war against Saudi Arabia

iv.The price of fuel at the forecourt will decrease

Provide justification and references along with the answer.

B.In the strawberry market, the quantity demanded is given byQ^D= 2,600 - 500P, and the quantity supplied is given byQ^S= -400 + 100P.

What is the equilibrium price and equilibrium quantity?

i.5 and 100 pounds

ii.4.25 and 3,000 pounds

iii.2.50 and 900 pounds

iv.1.80 and 2,200 pounds

C. The demand equation isQ^D= 15 -P. If the price increases fromP= 6 toP= 7,

what is the price elasticity of demand?