Region	Cost of supply ($ per barrel)	Transport costs ($ per barrel)	Quantity supplied (thousands of barrels per day)
Anadarko	$65	$3.00	361
Appalachia	$75	$6.00	125
Bakken	$55	$7.00	1214
Eagle Ford	$45	$0.50	1017
Haynesville	$70	$2.00	33
Niobrara	$40	$6.00	528
Permian	$35	$2.50	4333

3) Based off of the information provided, can you infer what the daily demand for crude oil in the US is (in thousands of barrels per day)? (3 points)

a. No. This cannot be done with the data provided b. 5878 c. 7453 d. 7486 e. 7611

4) During COVID, the total demand for crude oil in the US fell to 6,500 thousand barrels of oil per day. What was the new equilibrium price of oil during COVID? (3 points)

a. $81.00 b. $75.00 c. $68.00 d. $65.00 e. $62.00

5) The president has called for the elimination of fossil fuel subsidies as part of his plan to tackle climate change. The removal of subsidies is equivalent to adding a tax on fossil fuels. Assume demand is still at 6,500 thousand barrels a day. If a tax of $1.00 per barrel is introduced, which regions will produce and sell their oil? Select all the regions that will produce. (4 points)

a. Anadarko b. Eagle Ford c. Bakken d. Niobrara e. Appalachia f. Haynesville g. Permian

5) Implementing a tax on fossil fuels would result in which of the following in the market? (2 points)

a. Sunk cost b. shift in the supply curve c. Shift in the demand curve d. Deadweight loss

6) As electric vehicles and renewable energy become more available, will how will the demand curve for oil change? (2 points) a. More elastic b. Less elastic