Question

If Congress ended the subsidy for ethanol-based fuels, what would happen to the following and explain?...

If Congress ended the subsidy for ethanol-based fuels, what would happen to the following and explain?

a) Would the world demand curve for crude oil: Shift to the right, shift to the left, or stay the same

b) World supply curve for crude oil: Shift to the right, shift to the left, or stay the same

c) U.S. demand curve for crude oil: Shift to the right, shift to the left, or stay the same

d) U.S. supply curve for crude oil: Shift to the right, shift to the left, or stay the same

e) World crude oil prices: rise, fall, change little

f) U.S. crude oil prices: rise, fall, change little

g) World oil consumption: rise, fall, change little

h) U.S. oil consumption; rise, fall, change little

i) U.S. oil imports; rise, fall, change little

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

If the Congress ended subsidy for ethanol oil,

a) The world demand curve for crude oil will stay the same (because subsidy is a supply-side factor not a demand side factor).

b) The world supply curve for crude oil will shift to the left (because prices of crude oil will now increase, and the firms will supply lower at the same price).

c) U.S demand curve for crude oil will stay the same

d) U.S. supply.curve for crude oil will shift to the left

e) World crude oil prices will change little

f) U.S. crude oil pricea will rise

g) World oil consumption will change little

h) U.S. crude oik consumption will fall

i) U.S. oil imports will fall (because now it is costlier to import oil at the new high prices).

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
If U.S. Congress imposed an import fee on crude oil, what would happen to the following...
If U.S. Congress imposed an import fee on crude oil, what would happen to the following and explain? a) Would the world demand curve for crude oil: Shift to the right, shift to the left, or stay the same b) World supply curve for crude oil: Shift to the right, shift to the left, or stay the same c) U.S. demand curve for crude oil: Shift to the right, shift to the left, or stay the same d) U.S. supply...
If Europe experienced a severely cold winter, what would happen to the following and explain? a)...
If Europe experienced a severely cold winter, what would happen to the following and explain? a) Would the world demand curve for natural gas: Shift to the right, shift to the left, or stay the same b) World supply curve for natural gas: Shift to the right, shift to the left, or stay the same c) U.S. demand curve for natural gasl: Shift to the right, shift to the left, or stay the same d) U.S. supply curve for natural...
2. Answer the following two questions by filling in the table below and explaining your answers....
2. Answer the following two questions by filling in the table below and explaining your answers. You may draw graphs to assist you if you like, but you must still check the correct cell in the table get credit for your answers. Assume that the demand and supply curves for a specific country represent domestic supply and demand and do not count imports as part of supply or exports as part of demand. a. New policies for international trade by...
1. When there is a subsidy to consumers, * the demand curve will shift to the...
1. When there is a subsidy to consumers, * the demand curve will shift to the left the demand curve will shift to the right. the demand curve will shift, but the direction depends on relative elasticity. suppliers can expect to be taxed. 2. Which of the following is the great economic problem? * Differentiating shifts from movements Reducing the deficit in a multi-party system Minimizing unemployment in a changing world Satisfying unlimited wants with limited resources 3. On average,...
1. The U.S. $ appreciates against the Canadian $, the U.S. experience: a) an increase in...
1. The U.S. $ appreciates against the Canadian $, the U.S. experience: a) an increase in U.S. exports and a shift right of the U.S. AD curve b) an increase in U.S. exports and a shift left of the U.S. AD curve c) a decrease in U.S. exports and a shift right of the U.S. AD curve d) a decrease in U.S. exports and a shift left of the U.S. AD curve 2. The economy is in a recession: a)...
The belief by most economists that real and nominal variables are essentially determined separately in the...
The belief by most economists that real and nominal variables are essentially determined separately in the long run is characteristic of the ________ model. A.Keynesian B. aggregate supply C. classical D. aggregate demand Suppose the economy is in long-run equilibrium. Senator A succeeds in getting taxes lowered. At the same time, Senator B succeeds in getting major restrictions on logging enacted. In the short run A.the price level will rise, and real GDP might rise, fall, or stay the same....
a. Monetary Policy involves changing taxes and government spending/ the design of currency/ exports/ the money...
a. Monetary Policy involves changing taxes and government spending/ the design of currency/ exports/ the money supply.   In the United States, Monetary Policy is implemented by the Federal Reserve/ President and Congress/ Secretary of the Treasury/ states. b. Contractionary Monetary Policy/ Lower prices/ Expansionary MonetaryPolicy/ Larger coins can be used to address a Recessionary Gap; while Expansionary MonetaryPolicy/ smaller coins/ Contractionary Monetary Policy/ higher prices can be used to address an Inflationary Gap. c.  To enact Contractionary Monetary Policy, the central bank...
(Tricky -- or at least hard.) Suppose we observe price and quantity both falling. What does...
(Tricky -- or at least hard.) Suppose we observe price and quantity both falling. What does that tell us about changes in demand and supply? A- Demand must have fallen and supply must have been unchanged. B- Demand must have fallen; supply may either have risen, fallen, orremained unchanged. C- Supply and demand must both have fallen. D- Supply must have fallen; demand must either have fallen or remained unchanged. If there is an increase in the overall level of...
Explain what would happen to either the supply curve, the demand curve, the price of gasoline...
Explain what would happen to either the supply curve, the demand curve, the price of gasoline and the quantity of gasoline traded at equilibrium if the following scenarios occurred. Provide a simple sketch of the appropriate shift in the appropriate curve. If President Trump’s reduction in taxes (passed in December 2017), caused disposable income to rise, what would happen in the market for gasoline?
Congress passes a law which requires car manufacturers to reduce emissions during the manufacturing process. (a)...
Congress passes a law which requires car manufacturers to reduce emissions during the manufacturing process. (a) Which of the supply shifter variables (SPENT) is affected? (b) Will supply increase or decrease as a result of the change? (c) Which way does the supply curve shift (right or left)? (d) Assuming demand remains the same, what happens to equilibrium price and quantity after the shift? Will they increase or decrease?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT