Assume that the current equilibrium price for a barrel of oil is $27 and the interest rate is 5.70 percent. Round answers to the nearest whole number.

Question 1 [6 points] Assume that the current equilibrium price for a barrel of oil is $27 and the interest rate is 5.70 percent. Round answers to the nearest whole number. a) What does the price of oil need to be in 2 years to justify extracting it now? The oil should be extracted if, in 2 years, its price b) What will happen if oil producers think that the price of a barrel of oil in 2 years will be more than this gure? In this case, the producer will : " 3 ~