Consider the article: “Oil and gas executives rebuff Biden criticism of high prices”, and answer the following questions.
a) Graphically illustrate and explain the impact of the Russia-Ukraine war on the market for crude oil and gas.
b) Assuming that refineries have some market power, graphically illustrate and explain the impact of the Russia-Ukraine war on the quantity of refined oil that each oil refinery will supply.
c) Graphically illustrate and explain why consideration of patriotism in the pricing of refined oil, and other commodities in fact, is “challenges a pillar of US capitalism” and explain how this could lead to moral hazard.
d) Graphically illustrate and explain the impact of the reduction in crude oil import tariffs and improvement in the regulatory environment to allow fossil-fuel refining on the profitability of oil refineries.
e) Provide two reasons why it would be difficult for the Biden administration to lower crude oil import tariffs and to loosen the regulatory environment to allow fossil-fuel processing.
