Over Longer Periods of Time, Increases in Oil Prices Provide

question 231

Multiple Choice

Over longer periods of time, increases in oil prices provide firms with incentives to explore and recover oil.What does this indicate about the long-run price elasticity of supply for oil?

• A)The elasticity coefficient is likely to be higher in the long run than in the short run.
• B)The elasticity coefficient is likely to be lower in the long run than in the short run.
• C)The elasticity coefficient approaches 0 in the long run as supplies are depleted.
• D)The elasticity coefficient is unstable in the long run because oil supplies may be depleted.

---

Definitions:

Revised Act

An updated version of a law or statute that incorporates amendments or corrections.

Corporate Secretary

A corporate secretary is an officer of a company responsible for ensuring compliance with statutory and regulatory requirements and implementing decisions made by the board of directors.

Revised Act

Legislation that has been amended or updated from its original version.

Material Violation

A substantial breach of a contract or agreement that significantly undermines the contract's purpose or damages the interests of one of the parties involved.