Table 6.1 -Table 6.1 Indicates the Demand and Supply Schedules for Oil

question 29

Multiple Choice

Table 6.1
-Table 6.1 indicates the demand and supply schedules for oil in the United States.Suppose also that the world price of oil is $75 per barrel and that the United States can buy all the oil it wants at that price.Which of the following statements is TRUE about the impact of a law banning all oil imports?

• A)Consumers would pay a lower price for oil than they would under free trade.
• B)Domestic producers benefit from the law because they can charge a higher price and sell more.
• C)Total surplus in the oil market rises.
• D)Consumer surplus increases.

---

Definitions:

Marginal Cost

The expense associated with manufacturing an extra unit of a product.

Parking Fee

A charge imposed for the use of parking facilities, often varying based on location, time duration, and parking amenities.

Basketball Games

Competitive sports events involving two teams whose goal is to score points by throwing a ball through the opposing team's basketball hoop.

Entrance Fee

The amount of money charged for gaining access to a service, facility, or event.