Why Is the Supply Curve for Oil Rather Inelastic

question 134

Multiple Choice

Why is the supply curve for oil rather inelastic?

• A) There are not many widely available good substitutes for oil.
• B) To increase the production of oil would require a very significant outlay in terms of costs of exploration and drilling.
• C) The world supply of oil is decreasing.
• D) The supply curve for oil is always perfectly inelastic.

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