Crude oil prices have gained unprecedented attention in the last eight months, with prices of the so-called 'black gold' gaining as much as 10% and reaching 119.65 USD per Barrel. The staggering rise in crude oil prices is underpinned by the ongoing conflict between Russia and Ukraine.

Explain in detail the impact of high oil prices on the cost of production and overall inflation in the Australian Economy.(5 Marks)

The trend of the electric vehicle has been gaining substantial momentum in recent times. Do you think electric vehicles can potentially reduce the country's dependency on crude petroleum? Explain why? Explain, How the Australian government can support the electric vehicle market?(5 Marks)