Suppose that a dispute in the Persian Gulf halts the sale of oil from the Persian Gulf for one year.At the same time an important new oil field is found in a place where nobody expected there to be oil.What does economic theory predict will be the effect on the future price of oil to be delivered two years from now?
A)It will fall if the new pool is larger than the stock of oil in the Persian Gulf and rise otherwise.
B)It will fall.
C)It will rise unless the new pool can be brought into production before the Persian Gulf supply is resumed.
D)It will rise.
E)It will rise if the cost of extraction for the new oil is greater than the cost of extraction in the Gulf and fall otherwise.

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The Answer of Suppose that a dispute in the Persian Gulf halts the sale of oil from the Persian Gulf for one year.At the same time an important new oil field is found in a place where nobody expected there to be oil.What does economic theory predict will be the effect on the future price of oil to be delivered two years from now?
A)It will fall if the new pool is larger than the stock of oil in the Persian Gulf and rise otherwise.
B)It will fall.
C)It will rise unless the new pool can be brought into production before the Persian Gulf supply is resumed.
D)It will rise.
E)It will rise if the cost of extraction for the new oil is greater than the cost of extraction in the Gulf and fall otherwise.

Suppose That a Dispute in the Persian Gulf Halts the Sale