Drone attacks claimed by Yemens Houthi rebels struck two key oil installations inside Saudi Arabia on Saturday, damaging facilities that process the vast majority of the countrys crude output and raising the risk of a disruption in world oil supplies.

The targeted oil facilities can process 8.45 million barrels of crude oil a day between them, the bulk of production in Saudi Arabia, the worlds largest oil exporter. Saudi Aramco, the state-owned oil giant, said production of 5.7 million barrels a day well over half of the nations overall daily output was suspended.-The New York Times, September 2019

Q1: Using the model of Supply & Demand, describe what economic implications, or consequences the attack on Saudi Arabias oil refineries had on the global oil business. Q2: Since most of the worlds economies operate in a globalized fashion, explain how, and why businesses around the world - other than just the oil industry would be affected by a change in global oil price levels. Q3: Would you consider global demand for oil to be more elastic or inelastic? Explain your answer. Q4: Considering new technologies and innovation, how could your answer to question 3 above change in the future? Q1-Q4 are all long answers approximately 450-550 words. This is Managerial Finance subject.