Next year's expected price of oil is $90 per barrel. If the interest rate climbs from 5 percent to 20 percent per year and nothing else changes, then according to the Hotelling Principle the price of oil this year
A) will rise.
B) will fall.
C) will not change.
D) could rise, fall, or stay the same.
B
Economics
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The text uses traffic congestion as an example of
A) a surplus of automobiles. B) a negative externality. C) a good priced above equilibrium. D) an engineering rather than an economic problem.
Economics
Refer to Table 3-1. The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia) and the rest of the market. At a price of $5, the quantity demanded in the market would be
A) 51 lbs. B) 63 lbs. C) 76 lbs D) 146 lbs.
Economics