If the Price of Crude Oil (An Input to the Production

question 135

Multiple Choice

If the price of crude oil (an input to the production of gasoline) decreases,then we will expect to see

• A) a movement along the supply curve for gasoline upwards.
• B) a movement along the supply curve for gasoline downwards.
• C) a shift in the supply of gasoline to the left.
• D) a shift in the supply of gasoline to the right.

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Definitions:

Weak Property Rights

A situation where property rights are not fully enforced or clearly defined, leading to uncertainty and potential inefficiency in economic transactions.

Extraction

The process of removing or obtaining a resource from its source or original location, typically used in the context of natural resources.

Long-Term Stream

Long-Term Stream refers to a continuous process or sequence of events that unfolds over an extended period, often in the context of planning or investment.

Nonrenewable Natural Resources

Natural resources such as fossil fuels and minerals that do not replenish on a human time scale and hence are finite.