contestada

A shift of the supply curve of oil raises the price from $10 a barrel to $15 a barrel and reduces the quantity demanded from 40 million to 15 million barrels a day. You can conclude that the ___________.
A. demand for oil is inelastic
B. demand for oil is elastic
C. supply of oil is elastic
D. supply of oil is inelastic

Respuesta :

Martebi

Answer:

Option B: demand for oil is elastic

Explanation:

Price elasticity of demand is generally note to be the magnitude (degree) responsiveness of quantity demanded of goods/services to a change in price of goods and services.

A demand for goods and services is said to be elastic if the demand by consumer is relatively sensitive to changes in price.

The long-run demand for oil is usually elastic than the short run demand for oil.

Otras preguntas