I have submitted the following corrections the professor would like to be made. Most of the work has already been completed. There was just a correction that needs to be made. Please review the powerpoint.
Please note that in order to gain full
points, you will need to isolate each market event impact on either Supply or
will need to do this for the four events that were given in the assignment. I have made note in my comments on
exactly how to respond to each question.
At the end of your presentation you will
find a breakdown of the competencies and how you scored on these competencies
(highlighted in gold).” Below are the assignment instructions
Explain and demonstrate knowledge of concepts including the
supply/demand relationship, price ceilings and floors, and market
surpluses and shortages.
Oil Company X is a large oil refinery which has been expanding and
taking on new investment projects. Recently, they have considered
building a pipeline that stretches across the United States, from Canada
to New Orleans.
The Board is considering a proposal to increase their oil stores to
better prepare for events that impact the market price of oil. They have
asked you, as a member of the Cost Department, to determine events that
effect the price of oil. They have requested a report explaining the
various effects of these events on equilibrium price and quantity.
As a cost analyst at your firm, you are asked to evaluate the effects
that the following scenarios will have on the supply and demand of oil
in the oil market. You will submit a PowerPoint document with any
relevant graphs, including a narration of the shift changes as if you
were explaining them to the Board.
Using the drawing tools in PowerPoint, graph the changes to the supply and demand curves in response to the following events:
- Natural disaster near the outlet of the pipeline.
- Natural disaster near the inlet of the pipeline.
- Increase in availability of alternative energy sources.
Be sure to provide an oral explanation to justify why the supply
and/or demand curve would shift, the direction of the shift, and the new
resulting equilibrium price and equilibrium quantity. Remember that you
do not need to include actual figures, but rather explain if the price
and quantity would be increasing or decreasing. You can use the drawing
tools within PowerPoint to draw your graphs. Also, be sure to include
the change in the resulting equilibrium price and equilibrium quantity
if any curve shifts occur.