42 Supply and Demand Analysis: an Oil Import Fee

question 124

Multiple Choice

4.2 Supply and Demand Analysis: An Oil Import Fee
Refer to the information provided in Figure 4.4 below to answer the questions that follow. Figure 4.4
-Refer to Figure 4.4. Assume that initially there is free trade. If the United States then imposes a $25 tax per barrel of imported oil,

• A) the quantity of oil demanded will be reduced by 4 million barrels per day.
• B) the quantity of oil supplied by U.S. firms will increase by 8 million barrels per day.
• C) U.S. imports of oil will increase by 4 million barrels per day.
• D) the price of oil in the U.S. will increase to $150 per barrel.

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Definitions:

FM Modulator

A device that converts audio signals into FM signals, allowing them to be played through an FM radio receiver.

In Stock

Indicates that items are available for purchase and can be delivered or picked up immediately, as they are present in the inventory.

Close

The final step in a sales process where the salesperson secures the agreement of the customer to purchase.

Modified T-Account Close

A closing technique where the salesperson lists the pros and cons of purchasing a product in a T-account format to help the prospect make a decision.