According to the Department of Energy in 2008 the amount of oil imported into the United States reached 52% of the oil consumed in the country. That was about 9.7 million barrels a day of its daily oil needs. Given the rise in the price of oil in 2008 and using the circular flow model we can conclude that the

We can conclude that income will fall for both households and firms, because they will now have to spend more on oil-derived products like gasoline or diesel, or even oil itsef if they are a manufacturer.

However, this will raise the income of the firms that sell oil, since the price elasticity of demand of gasoline is relatively inelastic, and a price increase does not result in a immediate similar decrease in demand (in other words, demand falls less than the price rises).

a) both were commissioned explorers

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