Assume that the government of a nation rations the crude oil available to car owners each month which reduces the overall demand for petroleum. However, the nation continues to import oil from the world market. Which of the following will be observed in the oil market?
a. The world price of petroleum would decline.
b. The domestic price of petroleum would decline.
c. The domestic price of petroleum would increase.
d. The world price of petroleum will remain unaffected.
D
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Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If 4,000 pounds of pecans are sold
A) marginal benefit is equal to marginal cost. B) consumer surplus equals zero. C) the deadweight loss is equal to $12,000. D) the marginal benefit of each of the 4,000 pounds of pecans equals $3.
Stick Storage manufactures and sells computer flash drives. Last year it sold 2 million flash drives at a price of $10 each. For last year, the firm's
a. accounting profit was $20 million. b. economic profit was $20 million. c. total revenue was $20 million. d. explicit costs was $20 million.