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:

Immigration

The process of individuals moving to a new country or region with the intention of settling and residing there.

Dutch West India Company

A 17th-century trading company chartered by the Netherlands to conduct commerce and colonization in the Americas and West Africa, also involved in the Atlantic slave trade.

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A metaphor derived from a sermon by Puritan leader John Winthrop, emphasizing the idea that the colony of Massachusetts should serve as a model of righteousness and Christian virtue for the world.

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A group of English Protestants in the 16th and 17th centuries who sought to "purify" the Church of England from its "Catholic" practices.