If the price of oil is $60 per barrel, the quantity of oil supplied is 70 million barrels per day. If the price is $40 per barrel, the quantity of oil supplied is 69 million barrels per day. This implies that the
A) supply of oil is elastic.
B) supply of oil is inelastic.
C) demand for oil is inelastic.
D) demand for oil is elastic.

Question

Quizplus · Accepted Answer

The supply of oil is inelastic because a significant change in price from $60 to $40 results in only a small change in the quantity supplied from 70 million to 69 million barrels per day.

If the Price of Oil Is $60 Per Barrel, the Quantity