Why is the supply curve for oil rather inelastic? There are not many widely avai
ID: 1223011 • Letter: W
Question
Why is the supply curve for oil rather inelastic? There are not many widely available good substitutes for oil. To increase the production of oil would require a very significant outlay in terms of costs of exploration and drilling. The world supply of oil is decreasing. The supply curve for oil is always perfectly inelastic. If the market for iPads experiences a surplus, then the: supply of iPads will fall. demand for iPads will rise. price of iPads will rise. price of iPads will fall. During a recession, we expect that the opportunity cost of attending college: rises. falls. remains the same. cannot be determined from the information given. Since the price of antibiotics does not include all the costs of using antibiotics, the price is too: high, and so antibiotics are overused. high, and so antibiotics are underused. low, and so antibiotics are overused. low, and so antibiotics are underused. The brief United States attempt to centrally plan the oil market was in response to: oil exploration in the United States. oil exploration in Canada. the 1973 - 1974 oil crisis. development of viable alternative energies.Explanation / Answer
46. The correct option is A.
The elasticity of demand largerly depends on the number of close substitutes available, which oil soesn't have much, making it price inelastic.
47. Option D is correct.
Price plays a wedge between the demand and the supply. When there is excess supply, the price falls in order to sell more goods.
48. Option A is correct.
Opportunity cost is the cost of next best alternative. The next best alternative to attending college is to work and earn money. So the opportunity cost of attending college, which is income foregone while working, is high in a recession where there is shortfall of aggregate demand and money income.
49. Option C is correct.
Consuming and producing antibiotics create an external cost which is not paid by either the consumers or the producers, and hence is not incorporated into the price and the price is too low. Because the consumers also does not pay for that external cost, they tend to overuse it.
50. Option C is correct.
Due to oil crisis, the government had taken steps to limit the use of oil to minimum.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.