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Assume That the Government of a Nation Rations the Crude

Question 46

Multiple Choice

Assume that the government of a nation rations the crude oil available to car owners each month which reduces the overall demand for petroleum.However, the nation continues to import oil from the world market.Which of the following will be observed in the oil market?


A) The world price of petroleum would decline.
B) The domestic price of petroleum would decline.
C) The domestic price of petroleum would increase.
D) The world price of petroleum will remain unaffected.

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