During a mild winter, the price of home heating oil is expected to be less than it would be during a normal winter
What will be an ideal response?
True. During a mild winter, people do not need to operate their furnace as often as in a normal winter. The demand for home heating oil lies to the left of where it would be under normal weather conditions. As a result, the price of oil falls.
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Which two aggregate expenditure schedules AE in the diagram for a private closed economy have the same MPC, assuming investment is the same at each level of income?
A. AE 1 and AE 2 .
B. AE 2 and AE 3 .
C. AE 1 and AE 4 .
D. AE 3 and AE 4 .
Answer the following statement(s) true (T) or false (F)
1. Oligopolists use pricing policies that encourage newcomers to enter the market. 2. Vertical mergers are often subject to antitrust probes. 3. A price war that includes undercutting strategies will lower prices for consumers. 4. Oligopolists often experience large economic profits year after year. 5. Non-collusive oligopoly resembles a military campaign or poker game in some respects.