Why Is the Demand Curve for Oil Rather Inelastic

question 225

Multiple Choice

Why is the demand curve for oil rather inelastic?

• A) There are few widely available good substitutes for oil.
• B) To increase the production of oil requires a significant outlay of exploration and drilling costs.
• C) The world supply of oil is low relative to demand.
• D) The demand curve for oil is always perfectly inelastic.

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