Oil Refiners Can Refine a Barrel of Petroleum So That

question 155

Multiple Choice

Oil refiners can refine a barrel of petroleum so that it yields either more home heating oil or more diesel fuel.If the price of diesel fuel falls,there is

• A) an increase in the supply of home heating oil.
• B) a decrease in the supply of home heating oil.
• C) an increase in the quantity of home heating oil supplied.
• D) a decrease in the quantity of home heating oil supplied.
• E) an increase in the demand for home heating oil.

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Definitions:

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Corporation

A legal entity that is separate from its owners, offering limited liability to its shareholders, and is capable of entering contracts, suing and being sued.

Account Payable

The sum of funds that a business needs to pay back to its vendors or lenders for products or services bought on a credit basis.

Account Receivable

Debts owed by customers to a company for items or services that have been dispatched but not compensated.