The process involved in bringing oil to world markets can take years. Substitutes for oil-based products such as gasoline are limited. As a result
A) the supply of oil is very inelastic and the demand for gasoline is inelastic over short periods of time.
B) the supply of oil is very elastic and the demand for oil is very elastic over short periods of time.
C) the supply of oil and the demand for oil shift to the right over short periods of time.
D) the supply of oil and the demand for oil are both perfectly elastic over short periods of time.
A
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Which of the following is most likely to benefit from government established price floors in agriculture?
A) large farm owners and corporate farms B) small farmers C) cattle ranchers D) low income farmers
A monopoly can block the entry of others
Indicate whether the statement is true or false
The major drawback of a binding price ceiling is: a. it causes a surplus
b. government regulations of this kind are difficult to enforce c. it causes a shortage. d. none of the above; there is no drawback.
Explain why environmentally minded firms in a competitive industry will find it difficult to take environmental action