As a result of increased tensions in the Middle East, oil production is down by 1.21 million barrels per day a 5 percent reduction in the worlds supply of crude oil. Explain the likely impact of this event on the market for gasoline.

As a result of increased tensions in the Middle East, oil production is down by 1.21 million barrels per day a 5 percent reduction in the worlds supply of crude oil. Explain the likely impact of this event on the market for gasoline. How will the public transit be impacted? How will the market for tires be impacted? How will the market for large SUVs be impacted? (note: you need to provide a detailed explanation of each of these market reactions by using application of the supply and demand model.)