An Expected Increase in the Market Price of Oil in the Coming

question 103

Multiple Choice

An expected increase in the market price of oil in the coming year is likely to ________ in the current year.

• A) shift the supply curve of oil to the left
• B) shift the supply curve of oil to the right
• C) shift the demand curve for oil to the left
• D) cause no changes in the demand and supply curves of oil

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Definitions:

Prepaid Expense

Prepayments for products or services that are to be delivered at a later date.

Magazine Subscription

The payment for a pre-determined period of receiving periodic issues of a magazine or similar publication.

Paid

An amount of money that has been given or transferred in exchange for goods, services, or to settle a debt.

Accrued Expense

Expenses that have been incurred but not yet paid or recorded through a standard accounting transaction, often recognized at the end of an accounting period.