2. In January 2010, the approximate value of U.S. oil imports was $26.5 billion.

Question

2. In January 2010, the approximate value of U.S. oil imports was $26.5 billion. In January 2011, the approximate value of U.S. oil imports was $35.2 billion.

a) Give the information above, can you conclude that there has been a significant increase in the number of barrels of oil that the United States is importing? Briefly explain.

b) The average price per barrel of crude oil in January 2010 was $75. By January 2011, the price has risen to approximately $91 per barrel, By what percentage had the quantity of oil imported changed?

Explanation / Answer

(a) It is impossible to determine the change in the quantity of oil imported given the information regarding vaue of imports in 2010 and in 2011.

(b) Percentage chnage in quantity imported= [(35.2/91) - (26.5/75) 100 ] /(26.5/75) . =[ (0.386 - 0.353) 100 ]/ 0.353 = 0.033 (100)/0.353 = 9 %.

The percentage change in the quantity of oil imported = 9%.

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