Due to the recovery from coronavirus, the tourism industry and imports & exports has grown rapidly between countries. At the same time, Russia and the Organization of the Petroleum Exporting Countries have come to an agreement to restrict their production. Given the above scenario:

1.a) What are the factors affecting the demad? 1. b) What are the factors affecting the supply side? 1. c) How is this going to affect the demand curve? 1. d) How is this going to affect the supply curve? 1. e) What will be the ultimate change in equilibrium price and output of crude oil?

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If ethanol is an input to the production of oil, if the price of oil rises from $30 a barrel to $50 a barrel, the quantity demanded for ethanol increases from $900 tons per day to $1200 tons per day,

1. f.i )Calculate the cross elasticity between crude oil and ethanol? 1. f.ii) From the above, is ethanol and oil substitute or complement? Explain