The Three Diagrams Below Each Show a Supply Curve for Oil

question 38

Multiple Choice

The three diagrams below each show a supply curve for oil tankers over a relatively short period of time. FIGURE 13-3
-Refer to Figure 13-3.Consider the supply of oil tankers to an individual Canadian shipping firm,the North American shipping industry,and the world shipping industry.Which diagram best shows the supply of oil tankers that is relevant to the North American shipping industry?

• A)diagram 1
• B)diagram 2
• C)diagram 3
• D)diagrams 2 or 3
• E)diagrams 1 or 2

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Definitions:

Squared Values

The result of multiplying a number by itself, symbolizing the power of 2.

Scatterplot

A type of graph used in statistics to visually display and compare two variables for a set of data.

Variables Correlated

When variables are correlated, it means there is a statistical relationship showing that changes in one variable are associated with changes in another.

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases, indicating an inverse relationship.