Author Question: The above figure shows the market for oil. Because of the development of a new deep sea drilling ... (Read 65 times)

SGallaher96 · **on:** Jun 29, 2018

The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

A) demand curve shifts from D1 to D2 and the supply curve does not shift.
B) demand curve shifts from D1 to D2 and the supply curve shifts from S1 to S2.
C) demand curve does not shift, and the supply curve shifts from S2 to S1.
D) demand curve does not shift, and the supply curve shifts from S1 to S2.

Question 2

Pay-As-You-Throw programs that charge people a small price for each bag of trash they throw out are likely to ________.

A) increase waste creation
B) increase recycling and reuse
C) increase the social cost of waste disposal
D) reduce social surplus