There are seven oil and gas producing regions in the US. The data for the production quantity of oil from each region (in thousands of barrels per day) is given in the tablebelow:

Also provided is the cost to each region of producing a barrel per oil. Because the producing regions are not always located near where consumers are, there are also the costs associated with transporting the oil (like the costs of using a pipeline) which vary by region.

	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
	Source: https://www.eia.gov/petroleum/drilling/

Prior to the pandemic, all these regions were producing at full capacity. We can assume the demand for oil is fully inelastic.

1) Which diagram correctly shows supply and demand where demand is inelastic?

a. Diagram A

b.Diagram B