The windfall profits tax on oil will curtail oil production if
a. oil executives decide to be spiteful.
b. the demand for oil is inelastic.
c. the supply curve for oil is upward sloping.
d. the supply curve for oil is vertical.
c
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Which of the following statements is true of competitive market equilibrium?
A) The determination of equilibrium price and quantity is independent of the demand for goods. B) Social surplus is minimized at the competitive equilibrium. C) At the competitive equilibrium, there are no unexploited gains from trade. D) A competitive equilibrium is determined only by a few large sellers in the market.
Which of the following would cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons?
A) an increase in supply and an increase in demand greater than the increase in supply B) an increase in demand and an increase in supply C) a decrease in demand and an increase in supply D) an increase in supply