At a recent Australian Financial Review event, Qantas chief executive Alan Joyce said current crude oil prices of around $US130 ($179) a barrel up from $73 at the start of 2022 translated to a 7 percent increase in the average airfare, with another 1 percent rise for every $4 per barrel after that. Use of a diagram and explain in words, how the price and the quantity traded in equilibrium would change following an increase in the price of oil? How important is the price elasticity of demand in determining the new equilibrium price?

Give diagram and explanation also