What Is One Explanation for the Instability of Oil Prices

question 99

Multiple Choice

What is one explanation for the instability of oil prices?

• A) inefficient production techniques that have made it unprofitable to develop oil
• B) fluctuations in the inflation rate in major economies
• C) pressure from environmental groups to reduce carbon emissions?d expansion in the market for Canadian oil due to new pipeline construction

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Definitions:

Pure Monopolist

A single seller in a market with no close substitutes for the product or service offered, leading to significant control over prices and market conditions.

Inelastic Segment

A range on the demand curve where the quantity demanded changes little when the price changes.

Price-Quantity Combination

A specific pairing of price and quantity that appears on the supply or demand curve, representing a potential market transaction.

Imperfectly Competitive

Describes markets where individual buyers or sellers have some control over the price of goods and services due to a lack of perfect competition, often resulting in market power and price distortion.