JAMB Economics 1997 Question 30

Question 30

Natural Resources and Petroleum

A glut in the world market for crude oil means

  1. A.a fall in crude oil production
  2. B.an excess supply of crude petroleum
  3. C.a higher crude oil price offered by the buyer
  4. D.a higher crude oil price demanded by the seller.
Show the answer and explanation

Answer: B (an excess supply of crude petroleum)

Explanation

A glut is a situation where more of a commodity is supplied than buyers want at the current price.