Refer to the information provided in Figure 20.5 below to answer the question(s) that follow. Figure 20.5
-Refer to Figure 20.5. The domestic price of oil is $130 per barrel. This country imports 14 million barrels if the world price of oil is
A) $120.
B) $125.
C) $135.
D) $140.

Question

Refer to the information provided in Figure 20.5 below to answer the question(s) that follow.  Figure 20.5
-Refer to Figure 20.5. The domestic price of oil is $130 per barrel. This country imports 14 million barrels if the world price of oil is
A) $120. 
B) $125. 
C) $135. 
D) $140.

Quizplus · Accepted Answer

When the world price of oil is below the domestic price ($130), the country will import oil to meet its demand at a lower cost. At $120, the world price is below the domestic price, leading to imports.

Refer to the Information Provided in Figure 20