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Assume That the Government of a Nation Prohibits Producers from Extracting

Question 47

Multiple Choice

Assume that the government of a nation prohibits producers from extracting crude oil from some domestic oil fields.Which of the following will be witnessed in the market for crude oil?


A) The domestic and world price of crude oil would remain unaffected.
B) The domestic price of crude oil would increase.
C) Oil import from the world market would decline.
D) The world price of crude oil would increase.

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