After lockdowns were declared globally in 2020, the price of oil crashed from $64 per barrel in January to $18 per barrel in April. What is the most likely reason that lockdowns contributed to the oil price crash? (A) Supply increased due to oil companies reallocating resources to help with the COVID-19 pandemic. (B) Supply decreased due to oil workers being furloughed. (C) Demand increased from factories producing Personal Protective Equipment for essential workers. (D) Demand decreased since fewer people were commuting to work
After lockdowns were declared globally in 2020, the price of oil crashed from $64 per barrel in January to $18 per barrel in April. What is the most likely reason that lockdowns contributed to the oil price crash? (A) Supply increased due to oil companies reallocating resources to help with the COVID-19 pandemic. (B) Supply decreased due to oil workers being furloughed. (C) Demand increased from factories producing Personal Protective Equipment for essential workers. (D) Demand decreased since fewer people were commuting to work
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter13: Antitrust And Regulation
Section13.6: Imperfect Information
Problem 1.1YTE
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Question
29. After lockdowns were declared globally in 2020, the
per barrel in January to $18 per barrel in April. What is the most likely reason that
lockdowns contributed to the oil price crash?
(A) Supply increased due to oil companies reallocating resources to help with the
COVID-19 pandemic.
(B) Supply decreased due to oil workers being furloughed.
(C) Demand increased from factories producing Personal Protective Equipment for
essential workers.
(D) Demand decreased since fewer people were commuting to work.
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