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When OPEC Raises the Price of Petroleum, American Expenditures on Oil

Question 245

Multiple Choice

When OPEC raises the price of petroleum, American expenditures on oil imports increase, suggesting that


A) the United States' elasticity of demand for imported oil is greater than one.
B) the United States' elasticity of demand for imported oil is less than one.
C) imported oil and domestically produced oil are complementary goods.
D) the short-run elasticity of demand for oil is greater than the long-run elasticity.

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