Use a demand and supply model to explain and illustrate how petrol price has been affected...

Use a demand and supply model to explain and illustrate how petrol price has been affected as a result of COVID19 pandemic and price war in the global oil market. You need to articulate the determinants that lead to the change.

Identify the determinant for each event and articulate the direct impact on demand/supply. (Which determinant has change and which direction is going to be the shift and the two events should eventually lead to the price change that is consistent with the article.
Explain equilibrium process. In other words, the shift if the price doesn’t change what would be the driving force for price change. if the price doesn’t change and remains as the pre-pandemic or pre- war in the global oil market situation. Are we gonna show surplus, shortage and then what would happen to the price.
One 1 graph

Expert Solution

Rahul Sunny answered 3 years ago

Use a demand and supply model to explain and draw a graph how petrol price has...

Use a demand and supply model to explain and draw a graph how petrol price has been affected as a result of COVID19 pandemic and price war in the global oil market. You need to articulate the determinants that lead to the change. •The market: Australian petrol market. •Events: “COVID19 pandemic and price war in the global oil market”. •Identify influences for each event, and articulate the direct impact on demand/supply. •Outcome shall be consistent with the article (price drop).

•Use a demand and supply model to explain and draw a graph how petrol price has...

•Use a demand and supply model to explain and draw a graph how petrol price has been affected as a result of COVID19 pandemic and price war in the global oil market. You need to articulate the determinants that lead to the change. •The market: Australian petrol market. •Events: “COVID19 pandemic and price war in the global oil market”. •Identify influences for each event, and articulate the direct impact on demand/supply. •Outcome shall be consistent with the article (price drop).

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