Image below show the question and data needed
Plant Identifier Location Extraction Type Plant Capacity, '000 b/ Y MC (Extraction/Refining), $/b_ Qs (Quantity Supplied * Qd (Quantity Demande - - - - - -. . . . . . . . . .. .. . Plant Cl : Central Conventional 70: 5 30.00 Plant C2 Central Conventional 30: 5 35.00 Plant C3 Central Conventional 30: 36.00 Plant C4 Centra : Conventional 90: 5 31.00 - - -....-. -- -4- Plant C5 Central Conventional 60: 37.00 - - - -. ....... - -........... Plant E1 East Shale 60: 5 52.00 - - - - - - . . ... ------ -4-. Plant E2 East Shale 80: 38.00 nito -----.--... i - - - -. . ... 1---........ Plant E3 East : Shale 90: 40.00 - - -- --- -- Plant E4 Fast : Shale 18 42.00 --....... -....... Plant N1 North Conventional 210:9 28.00 - -. ...... Plant N2 North Conventional 80: 33.00 Plant N3 North Conventional 70: 34.00 - - . . . . . .- - Plant N4 North. Conventional 100: 43.00 --........ -. . ......-4- Plant N5 North Conventional 10 44.00 Plant N6 North Conventiona 20.00 -...:..... Plant $1 South Conventional 120; 10.00 -C.--4-- Plant $10 South Conventional 120; 12.00 Plant S11 South Conventional 120: 5 15.00 F - - Plant $12 South Conventional 5 22.00 i - - - - - - - - Plant $2 South Conventional 100: 16.00 Plant $3 South Conventiona 5 18.00 -4 - - - - - - -- -- - - - - ---4- Plant $4 South Conventional 70: 19.00 Y - - - - - - -- P - - - - - ---- - - - -4- Plant $5 South Conventional 70: $ 21.00 - - - - - Plant $6 South Conventional 60: 23.00 - - - - - - - - -; Plant $7 South Conventional 60: $ 24.00 ; - - Plant 58 South Conventional 60: 5 25.00 - - - - - - - - - - Plant $9 South Conventional 26.00 - ---4- - Plant SE1 South-East :Shale 46.00 Plant SE2 South-East :Shale 50: $ 32.00 ; Plant SES South-East :Shale 70: 5 48.00 :\fQuestion 2 (15 points) Now. suppose that as population and incomes grow, demand for oil shifts, and can now be approximated by the demand function Q- = -208 + 3,300. Using Excel, create a graph that clearly shows (new) demand and (unchanged) supply for oil in Exockland, and determine the equilibrium quantity and price. Make sure that you appropriately label your axes and include legends for your curves. Please recall that your Q should be on the x-axis and your P should be on the y-axis, per standard convention in economics. Insert the graph below (copy and paste from Excel). Please scale the graph as appropriate to show detail clearly. What are the equilibrium quantity and price of oil in Brockland? As demand changed, how many plants will now operate to produce oil, and how many plants will remain shut down in the short run? Why?Question 3 (20 points) This question builds on Questions 1 and 2 and assumes that the demand curve is as described in Question 2, Q- = -20P + 3,300. Additionally, due to a considerable improvement in the shale oil extraction technology. the shale oil plants (3 plants in the South-East, numbered SE1 through SE3: and 4 plants in the East, numbered E1 through E4) are able to reduce their respective marginal costs by 80% and increase capacity by 1009% (double the capacity, essentially). For example. for Plant SE2. marginal cost was $32 with capacity of 50 (50 thousand barrels per day); now, these become an MC of $12.80 and capacity of 100 (100 thousand barrels per day). Using Excel, create a graph that clearly shows demand curve from Question 2 and new supply for oil in Brockland, and determine the equilibrium quantity and price. Make sure that you appropriately label your axes and include legends for your curves. Please recall that your @ should be on the x-axis and your P should be on the y-axis, per standard convention in economics. Insert the graph below (copy and paste from Excel). Please scale the graph as appropriate to show detail clearly. What are the equilibrium quantity and price of oil in Brockland? As supply changed. how many plants will now operate to produce oil, and how many plants will remain shut down in the short run? Why? What types of plants are primarily impacted by closures
