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Specification:

• Demand, supply, consumer surplus, producer surplus

Click to read the article below and then answer the questions:

Opec + insists on increase in oil supplies after US intervention in Saudi Arabia

• Define the terms:

  i) Question

  ii) Provision

• Using a diagram, distinguish between producer and consumer surplus

• Use a supply and demand chart and analyze the impact of Saudi Arabia’s agreement to continue to increase its monthly oil production

• Use a supply and demand diagram and analyze the effect of an increase in the supply of oil on consumer surplus and producer surplus

Gavin Clarke, Emmanuel College