Refer to the information provided in Figure 33.5 below to answer the question(s) that follow. Figure 33.5
-Refer to Figure 33.5. The domestic price of oil is $130 per barrel. If the world price of oil is $120 per barrel, this country will
A) import 19 million barrels.
B) import 14 million barrels.
C) export 5 million barrels.
D) export 19 million barrels.

Question

Refer to the information provided in Figure 33.5 below to answer the question(s) that follow.  Figure 33.5
-Refer to Figure 33.5. The domestic price of oil is $130 per barrel. If the world price of oil is $120 per barrel, this country will
A) import 19 million barrels. 
B) import 14 million barrels. 
C) export 5 million barrels. 
D) export 19 million barrels.

Quizplus · Accepted Answer

At the world price of $120, the domestic demand for oil is 25 million barrels and domestic supply is 11 million barrels. Therefore, the country will need to import the difference between demand and supply, which is 14 million barrels (25 - 11 = 14).

Refer to the Information Provided in Figure 33