US Highway 12 Is Part of a Crucial Two-Lane Artery

question 74

Multiple Choice

U.S. Highway 12 is part of a crucial two-lane artery from the seaports in Washington State to the tar sands in Canada. Extracting oil from the tar sands requires very large equipment and transporting it takes up both lanes of U.S. Highway12. In August of 2010, Idaho granted ConocoPhilips a road permit that allowed it to transport four oil-processing units. Without this permit, ConocoPhilips would have had to transport those units a much longer distance to get them to their destination. If permits for this highway were not allowed, how would that affect the elasticity of which curve in the market for oil?

• A) The supply curve would become more elastic.
• B) The supply curve would become less elastic.
• C) The demand curve would become more elastic.
• D) The demand curve would become less elastic.

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Definitions:

Operations Period

The timeframe during which specific operational activities or processes are carried out.

Financial Risk

The possibility of losing money on an investment or business operation, including risks related to market movements, credit, liquidity, and operational failures.

Actual Return

The real gain or loss experienced on an investment over a specified time period.

Expected Return

Expected return is the anticipated amount of profit or loss an investment is predicted to generate, accounting for the probability of different outcomes.