Enter the letter of the graph that most accurately depicts what would happen to
ID: 1227432 • Letter: E
Question
Enter the letter of the graph that most accurately depicts what would happen to supply and/or demand FOR OIL in each of the following scenarios. Note: The same letter may be used for more than one scenario.
Chevron U.S.A. Inc. announced that it has begun commercial production of premium base oils from a newly constructed manufacturing facility at the company's Pascagoula refinery.
Toyota has developed a new Prius Plug-in Hybrid that gets 581 miles per gallon.
The U.S. government requires oil refineries to make fuel with at least 10% ethanol.
Marine manufacturers warn that ethanol can harm boat engines, leading boaters to fill up at 100% gasoline gas stations.
Chevron U.S.A. Inc. announced that it has begun commercial production of premium base oils from a newly constructed manufacturing facility at the company's Pascagoula refinery.
Toyota has developed a new Prius Plug-in Hybrid that gets 581 miles per gallon.
The U.S. government requires oil refineries to make fuel with at least 10% ethanol.
Marine manufacturers warn that ethanol can harm boat engines, leading boaters to fill up at 100% gasoline gas stations.
51 3 52 52 S1 0 D2 Quantity Quantity Quantity S1 S2 D2 IDl Dl D2 Quantity QuantityExplanation / Answer
a. Option D.
With premium production of oils, the supply of oil would rise and the supply curve for oil would shift to the right, with this the quantity would increase and the price would fall.
b. Option B.
With fuel efficient cars which require less oil for running would reduce the demand for oil and the demand curve would shift to the left with lower prices and lower quantity.
c. Option E.
With fuel to be made using a mix of ethanol and oil, the demand for oil would increase, the demand curve would shift to the right with higher prices and quantity.
d. Option B.
With now boaters filling only gas, the demand for oil would reduce and the demand curve would shift to the left.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.