Since Improved Technology Continually Lowers the Cost of Discovering and Producing

question 186

Multiple Choice

Since improved technology continually lowers the cost of discovering and producing oil, how can rising oil prices in recent years be explained?

• A) This is evidence against the supply and demand model.
• B) Demand has increased by more than supply increased, raising prices.
• C) Prices always rise when supply shifts down and to the right.
• D) Oil is one of the few commodities that do not follow the supply and demand model.

Recognize the significance of sensory receptors in detecting environmental changes.

Understand the distinction between well-structured and ill-structured problems.

Recognize the application and limits of programmed decision-making.

Identify the characteristics and applications of rules and standard operating procedures in decision making.