All of the Following Statements Are Correct Except

Multiple Choice

All of the following statements are correct except

A) if the price of oil is expected to rise at a rate equal to the interest rate,demand increases and supply increases.
B) the interest rate is the opportunity cost of holding an oil inventory.
C) if the price of oil is expected to rise at a rate that exceeds the interest rate,demand increases and supply decreases.
D) according to the Hotelling Principle,the price of a nonrenewable natural resource is expected to rise at a rate equal to the interest rate.
E) the marginal cost of extraction of oil is the fundamental determinant of supply.