When the Price of Oil Declines Significantly, the Price of Gasoline

question 147

Multiple Choice

When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n)

• A)increase in the demand for gasoline.
• B)decrease in the demand for gasoline.
• C)increase in the supply of gasoline.
• D)decrease in the supply of gasoline.

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Definitions:

Financing Provided

Funds supplied to businesses or individuals for the purpose of investing, expansion, or operating expenses that are expected to be repaid in the future.

Retained Earnings

The segment of net profits that are not distributed as dividends, instead kept within the company for reinvestment in its main operations or for debt repayment.

Current Asset

A slightly different term for assets likely to be used or turned into cash within one fiscal year or operating cycle, emphasizing liquidity.

Land

An asset representing the earth's surface that a company owns, used for operations, development, or investment.