The supply curve for oil is ________ because ________.
A) elastic; per unit costs do not increase when the quantity supplied increases
B) elastic; oil exploration and drilling is not expensive relative to revenues earned
C) inelastic; per-unit costs rise quickly when the quantity supplied increases
D) inelastic; oil exploration and drilling is not expensive relative to revenues earned

Question

Quizplus · Accepted Answer

The supply curve for oil is inelastic because per-unit costs rise quickly when the quantity supplied increases. This is due to the fact that oil exploration and drilling are expensive relative to the revenues earned, and it's difficult to quickly increase supply in response to changes in demand.

The Supply Curve for Oil Is ________ Because ________

The Supply Curve for Oil Is Because