The price of crude oil rose to over $100 per barrel in early 2013. What would we expect to see happen to the supply of plastic, which is produced using crude oil?
A) The supply of plastic will increase.
B) The supply of plastic will decrease.
C) The supply of plastic will stay the same because the government requires plastic producers to meet statutory minimum production levels.
D) The supply of plastic will stay the same because of the profit motives of plastic producers.
B
You might also like to view...
The opportunity cost of an action is
a. objective and will be the same for all individuals. b. a measure of the undesirable aspects involved in the action. c. applicable only to choices involving material goods like commodities. d. the highest valued alternative forgone as the result of choosing an option.
For a monopolist, when the output effect is greater than the price effect, marginal revenue is
a. positive. b. negative. c. zero. d. maximized.