true or false The price of oil is decreasing in the international oil markets. We should...

true or false The price of oil is decreasing in the international oil markets. We should expect that the demand for cars will shift to the left. and Explain why?

Expert Solution

Answer.

Oil and Cars are complementary goods. complementary goods are those goods which increase in the price of a good reduces the demand for its comlement and decrease in the price of a commodity increases the demand for its complement. When the price of oil is decreasing in the international oil markets. The demand for cars increases. This can be sjown in the followinf figure;

In the above figure, x-axis shows quantity and y-axis shows price. D is the demand curve and S is the supply curve. As the result of the price of oil is decreasing in the international oil markets, the demand for cars increases, the demand curve shift to the right. The price increases from p to p1 and quantity aso increases from q to q1.

Rahul Sunny answered 2 years ago

The price of oil in international markets has dropped stunningly 60% in the past twelve months....

The price of oil in international markets has dropped stunningly 60% in the past twelve months. Among the factors mentioned behind this drastic fall is the millions of barrels of oil produced in the US called shale oil. Look at the supply and demand picture for this commodity and try to analyze its price action. Discuss the impact of price elasticity of supply and demand in the short and long terms. Should be in 3-4 pages thanks

Price of oil in international markets has dropped stunningly 60% in the past twelve months. Among...

Price of oil in international markets has dropped stunningly 60% in the past twelve months. Among the factors mentioned behind this drastic fall is the millions of barrels of oil produced in the US called shale oil. Look at the supply and demand picture for this commodity and try to analyze its price action. Which is the impact of price elasticity of supply and demand in the short and long term? Hi I have no pic this is the question...

1. There are two kinds of secondary markets: auction markets and dealer markets. True False 2....

1. There are two kinds of secondary markets: auction markets and dealer markets. True False 2. The agency problem is the possibility of a conflict of interest between the management and employees of a company: True False

True or false We should not include the irrelevant independent variable, which has no effects on...

True or false We should not include the irrelevant independent variable, which has no effects on the dependent variable, into the regression model. ( ) If the null hypothesis is not rejected, then it means that the null hypothesis is accepted. ( ) A variable that is a proportion or a percent can appear in either original or logarithmic form. ( ) The variables correlated with the independent variable of interest must be included as control variables due to the...

True/False. Explain. If a PPF is concave, then this reflects the principle of decreasing opportunity cost and...

True/False. Explain. If a PPF is concave, then this reflects the principle of decreasing opportunity cost and can be explained by perfect transferences of resources.

Decreasing the quantization interval of an ADC will decrease the average quantization error, True or False.

Talent is NOT a method used for segmenting consumer markets. TRUE OR FALSE

True or False One of the factors responsible for globalization of financial markets and institutions is...

True or False One of the factors responsible for globalization of financial markets and institutions is deregulation.

1. True/ False: A rise in oil prices is an example of when a Contractionary policy...

1. True/ False: A rise in oil prices is an example of when a Contractionary policy would be best? 2. True/ False: Rising inflation is an example of when an Expansionary policy would be best? 3. True/ False: A stock market collapse that hurts consumers and business confidence is an example of when an expansionary policy would be best. 4.True/ False: Extreme rapid growth of exports is an example of when a Contractionary policy would be best.

True or False The CAPM is an approach to determine the cost of international equity capital....

True or False The CAPM is an approach to determine the cost of international equity capital. 17) TRUE or FALSE The MNE can increase its marginal cost of capital by gaining access to markets that are more liquid and/or less segmented than its own. 14) TRUE or FALSE To minimize the cost of external funds, the MNE should choose to minimize debt financing. TRUE or FALSE In theory, the MNE should support lower debt ratios than a purely domestic firm...

Question