Oil Producers Expect That Oil Prices Next Year Will Be

question 97

Multiple Choice

Oil producers expect that oil prices next year will be lower than oil prices this year.As a result,oil producers are most likely to

• A) place more oil on the market this year,thus shifting the present supply curve of oil rightward.
• B) hold some oil off the market this year,thus shifting the present supply curve of oil leftward.
• C) place more oil on the market this year,thus increasing the quantity supplied of oil at lower but not higher prices.
• D) hold some oil off the market this year,thus decreasing the quantity supplied of oil at lower but not higher prices.

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Definitions:

Cell A

In the context of matrices or spreadsheets, it typically refers to the top-left cell or the first cell in a table.

Compounded Annually

A method of calculating interest where the interest earned over a period is added to the principal, and the total becomes the basis for calculating interest in the next period, occurring once per year.

Positively Correlated

A relationship between two variables where both either increase or decrease together.

Negatively Correlated

A statistical relationship between two variables in which one variable increases as the other decreases.