If an Inexpensive Alternative to Oil Were Found,the Price of Oil

question 97

Multiple Choice

If an inexpensive alternative to oil were found,the price of oil adjusted for inflation

• A)would decline as the alternative would reduce the demand for oil.
• B)would decline as the alternative would reduce the supply of oil.
• C)would increase as the alternative would increase the demand for oil.
• D)would increase as the alternative would increase the supply of oil.

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Definitions:

Weighted Average Method

A cost accounting method that averages all costs of inventory available for sale during the period regardless of purchase date, to determine the cost of goods sold and ending inventory.

Weight Factors

Variables or coefficients assigned in a calculation or analysis to reflect the importance or influence of different elements.

Physical Measures

Quantitative indicators used to assess the physical aspects of a business, such as volume of production or quantity of materials used.

Market Value

The present cost for purchasing or selling a product or service in a market.