Task 1 - 25 Marks Scenario On 27 April 2020, the benchmark West Texas Intermediate (WTI) crude oil price was $12.64 per barrel. For most of 2019, WTI crude oil had been trading in the range of $55.00 - $65.00 per barrel. a) Analyse why the WTI benchmark crude oil price fell to this extent, using a supply and demand diagram to illustrate your analysis. (13 marks) b) Discuss the THREE (3) items that are assumed constant when a demand curve is drawn. Which, if any, of the three changed in relation to the market for crude oil in early 2020? (12 marks) (Total 25 marks) Task 2 - 25 Marks a) Certain markets have features that make them more "contestable" than others. Evaluate the implications for a firm operating as a pure monopolist in its own country, of the international market becoming contestable. You should use research to support your answer. (10 marks) b) "Monopolies are usually regarded as working against the interests of society." Discuss (with the use of supporting research) arguments that are in support of and in contrast to, the above statement. (15 marks) (Total 25 marks)Task 3 - 25 Marks Aggregate demand in Country C is given by C + I + G + (X -Z), where C = consumption expenditure I = investment expenditure G = government expenditure X = exports Z = imports a) Assume that Country C is in recession, with a level of income of Y* that is significantly less than the full employment level of income, as demonstrated in the diagram below: Aggregate 45 degrees demand C+I+G+(X-Z) Income Yf The government of Country C decides to use fiscal policy, in the form of changes in government expenditure or taxation, in order to shift the economy from Y* to Yf. Identify what the monetary implications of this change in fiscal policy will be and discuss how those implications may limit the effectiveness of the fiscal policy. (10 marks) bj Assess the THREE (3) major constraints that apply when governments use fiscal policy in an attempt to stabilise the level of income in an economy. (15 marks) (Total: 25 marks)