Why Is the Supply of Oil More Price Elastic in the Long

question 23

Multiple Choice

Why is the supply of oil more price elastic in the long run?

• A) New deposits are found.
• B) Better extraction technology is developed.
• C) Firms have the ability to change the amount of all inputs.
• D) All of the above.

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Definitions:

Incorporating

The process of legally declaring a business as a corporation, providing it with specific legal rights and protections.

Limited Liability

A legal structure that limits the personal financial responsibility of shareholders, partners, or owners for company debts and obligations.

Common Stock

Equity ownership in a corporation, with voting rights and the potential to receive dividends.

Petroleum

A natural resource that consists of a complex mixture of hydrocarbons and is used primarily as fuel and in the production of chemicals.