Ans: A) E= -.10, B) P= 71.08

R3) Consider the long run demand and supply equations that were estimated for the oil market in 2017-2019 (in million barrels per day): Q = 106.62-0.13P and Q$ = 82.20+0.20P. In that period, the market price was around $74. A) Based on the demand equation provided, what was the price elasticity of demand in that period? B) Expanded drilling of oil in Alaska could have increased the world supply of oil by approximately 1% if exploration had started about 10 years earlier. Find the equilibrium price in the market under that scenario of a 1% supply expansion, holding everything else constant