ECO 201 Principles of Macroeconomics

Background: Colonial Pipeline is a major oil pipeline system that transports refined oil (gasoline, diesel and jet fuel) from the US Gulf Coast to states mainly on the East Coast of the country. On May 7, 2021, Colonial Pipeline suffered a ransomware cyberattack that disrupted the distribution of refined oil products causing a massive shortage of oil to its East Coast markets.
Assume that around the time of the ransomware cyberattack, a rebound of the US economy had caused a significant increase in the desire to use refined oil products, such as gasoline and jet fuel in the East Coast markets.
Template: Use the template below to answer the questions: Include 8 economic terms from any chapter studied so far this semester. Underline the terms and use bold font or no points will be given. Use one quote from an outside source to support your statements. Include TWO Cross posts and be sure to add a fact or quote with citations to expand the discussion.
Questions:
Section 1 Analysis with Graph: In one or two paragraphs, provide a brief analysis of the impact of these two events on the demand and supply of refined oil products in the East Coast markets of the US. Your analysis should include a graph** showing how supply and/or demand changed. All curves and axis should be correctly labeled.
** How to upload the graph to the discussion board. Create the graph yourself, by hand, and take a picture of it with your phone, save it to your laptop or tablet. In the discussion board toolbar, click the ‘picture’ icon, click ‘upload image’ and upload the picture you took of your graph. If you want to create the graph directly on your laptop or tablet, that’s fine too, just save the graph and upload the same way.
Section 2: Change in Equilibrium Price and Quantity IF these two events persisted for several weeks:
is the Equilibrium Price of refined oil products likely to remain the same, increase or decrease? Explain.
is the Equilibrium Quantity of refined oil products likely to remain the same, increase or decrease? Explain.

Section 3: Policy Option: Describe and analyze one policy option available to the Government if the distribution of refined oil products remains constrained beyond several weeks.
Section 4: Two cross posts with a citation for the fact or quote you added to expand the discussion.
Grading Rubric:
Markets and Ransomware
Markets and Ransomware
Criteria
Ratings
Pts
Section 1: analysis and graph of impact using specific references to the demand and supply model; Analysis 12 points; Graph 8 points
20 pts
Full Marks
0 pts
No Marks
20 pts
Section 2: Explain impact on equilibrium Price; explain impact on equilibrium quantity. Impact on equilibrium Price 10 points; impact on equilibrium quantity 10 points Detailed explanation for each.
20 pts
Full Marks
0 pts
No Marks
20 pts
Section 3: Identify one policy option that could be used. Explain why this would be effective – use a quote to support your view on the option
20 pts
Full Marks
0 pts
No Marks
20 pts
Section 4 Cross Posts with additional fact or quote and relevant citation
20 pts
Full Marks
0 pts
No Marks
20 pts
Economic Perspective: 8 terms 16 points ( underlined and Bold Font or not credit given) and one quote or fact with citation 4 points
20 pts
Full Marks
0 pts
No Marks
20 pts
Total Points: 100