Which Situation Below Would Represent a Shortage in the Oil

question 81

Multiple Choice

Which situation below would represent a shortage in the oil market?

• A)Quantity demanded is 5.2 million;quantity supplied is 5.1 million.
• B)Market price $75.00 per barrel;equilibrium price $81.00 per barrel.
• C)Market price $81.00 per barrel;equilibrium price $75.00 per barrel.
• D)Quantity supplied this year is 25% greater than quantity supplied last year.

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Definitions:

Consumer's Income

The total amount of money earned by a consumer, determining their purchasing power and affecting their demand for goods and services.

Corner Solution

In optimization problems, a situation where the optimal choice for a variable is at the limit or bound of its possible values, rather than in the interior of the choice set.

MRS

The speed at which a consumer is prepared to exchange one product for another while keeping the same degree of happiness or utility.

Travel

The act of moving from one place to another, which can be for various purposes such as leisure, business, or exploration.