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Table 6.1 -Table 6.1 Indicates the Demand and Supply Schedules for Oil

Question 29

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Table 6.1 -Table 6.1 indicates the demand and supply schedules for oil in the United States.Suppose also that the world price of oil is $75 per barrel and that the United States can buy all the oil it wants at that price.Which of the following statements is TRUE about the impact of a law banning all oil imports? A) Consumers would pay a lower price for oil than they would under free trade. B) Domestic producers benefit from the law because they can charge a higher price and sell more. C) Total surplus in the oil market rises. D) Consumer surplus increases. Table 6.1
-Table 6.1 indicates the demand and supply schedules for oil in the United States.Suppose also that the world price of oil is $75 per barrel and that the United States can buy all the oil it wants at that price.Which of the following statements is TRUE about the impact of a law banning all oil imports?


A) Consumers would pay a lower price for oil than they would under free trade.
B) Domestic producers benefit from the law because they can charge a higher price and sell more.
C) Total surplus in the oil market rises.
D) Consumer surplus increases.

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