Asked by Patrick Barnett on May 11, 2024
Verified
Refer to Figure 4.4. At the world price of ________ per barrel of oil, the United States imports 6 million barrels of oil per day.
A) $100
B) $125
C) $150
D) >$150
World Price
The international market price for a given good, influenced by global supply and demand factors.
Imported Oil
Crude or refined petroleum products sourced from foreign countries.
- Recognize the effects of tariffs and global trade policies on local markets.
Verified Answer
JM
Jessica Miranda ElizondoMay 15, 2024
Final Answer :
B
Explanation :
At the world price of $125 per barrel of oil, the United States would import 6 million barrels of oil per day because this price level is where the quantity demanded by the U.S. exceeds the quantity supplied domestically by 6 million barrels, necessitating imports to meet the demand.
Learning Objectives
- Recognize the effects of tariffs and global trade policies on local markets.