Oil producers expect that oil prices next year will be lower than oil prices this year. As a result, oil producers are most likely to
A) place more oil on the market this year, thus shifting the present supply curve of oil rightward.
B) hold some oil off the market this year, thus shifting the present supply curve of oil leftward.
C) place more oil on the market this year, thus increasing the quantity supplied of oil at lower but not higher prices.
D) hold some oil off the market this year, thus decreasing the quantity supplied of oil at lower but not higher prices.
A
You might also like to view...
Which of the following statements about a monopolistically competitive firm is TRUE?
A) A monopolistically competitive firm does not always equate marginal cost to marginal revenue because it uses other means to maximize profits. B) A monopolistically competitive firm maximizes profits by charging a price equal to marginal cost. C) A monopolistically competitive firm produces the quantity at the point at which the demand curve crosses the marginal cost curve. D) A monopolistically competitive firm maximizes profits when it produces the quantity at which marginal cost equals marginal revenue.
The substitution effect from an increase in wages is evident in a
a. decrease in labor demand. b. desire to consume less leisure. c. desire to consume more leisure. d. backward-bending labor supply curve.