“Crude Oil Price Forecast – Crude Oil Markets Bounce From Bottom of Triangle,” “U.S. gasoline prices...

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“Crude Oil Price Forecast – Crude Oil Markets Bounce From Bottom of Triangle,” “U.S. gasoline prices climb even as Colonial reopens after hack”and“Trucking Failures Surged Last Year Under Pandemic”

https://finance.yahoo.com/news/crude-oil-price-forecast-crude-163041628.html

https://finance.yahoo.com/news/u-gasoline-prices-climb-even-150040112.html

https://www.wsj.com/articles/trucking-failures-surged-last-year-under-pandemic-11612827527

Answer the following questions:

OIL:

How should we expect the cost of oil to affect the cost of producing gasoline, diesel and other oil-based products in the US and other parts of the world? Why?

What is the effect of changes in gasoline prices on the demand for restaurant meals? Is gasoline an economic complement of restaurant meals? Are restaurant meals an economic complement of gasoline?

TRUCKING:

There are more than 168,000 interstate motor carriers with more than 2 million trucks in the U.S., according to the American Trucking Associations, an industry group. Does the large number of carriers necessarily indicate that the industry is perfectly competitive?

What might you infer about the price elasticity of demand for diesel fuel in the short run? In the long run?

“AT&T Is Preparing to Merge Media Assets with Discovery”and“AT&T will merge WarnerMedia operations with rival Discovery”

https://www.bloomberg.com/news/articles/2021-05-16/at-t-is-said-in-talks-to-combine-content-assets-with-discovery-kor6r2uj

https://apnews.com/article/att-discovery-warnermedia-hbo-d7259d1e50f24f12de3edcf9fb7ee33a

Describe/explain how AT&T, which is merging with Discovery, is pursuing economies ofscale.

Describe/explain how AT&T is pursuing economies ofscope.

How does the merger with Discovery provide AT&T with potential benefits related tolearning economies?

Review the articles and answer the questions. Answer all questions with a minimum of 500 words.

Sourav · Accepted Answer

Economics
Table of Contents
Oil	3
Trucking	3
AT&T and Discovery Merger	3
Reference List	5
Oil 
1. Oil, gasoline, diesel and other oil-based products are linked to each other and are extracted from more or less the same raw crude oil. As per economics, oil being a relatively inelastic product tends to directly impact the prices of its products such as diesel and gasoline. An increase in the price of oil will also increase the prices of gasoline and diesel as they are necessary goods and are not luxuries. They are also considered to be complementary goods in economics (Lewis, 2021). 
2. Climb of the US gasoline prices will decrease the demand for gas as per the demand law in economics. As prices and demand are inversely related to normal goods (Kjaer et al., 2019). As a result, the price of the restaurant meals will also rise which will cause the demand for restaurant meals to fall. 
Yes, gasoline is considered as an economic complement of the restaurant meals as they are associated and an increase in the price of gasoline will cause the demand for restaurant meals to fall. 
Yes, as the decrease in gasoline prices will increase its demand and thus the restaurant meals also. 
Trucking
3. As per the given information,

“Crude Oil Price Forecast – Crude Oil Markets Bounce From Bottom of Triangle,” “U.S. gasoline prices climb even as Colonial reopens after hack”and“Trucking Failures Surged Last Year Under Pandemic”...

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