Question

Read the following passage carefully and answer the given questions. Certain words/phrases are given in bold to help you locate them while answering some of the questions.
What does the phrase "the price elasticity of demand for crude oil is very low" imply?

• A. When the price rises, the demand for crude oil falls immediately.
• B. A small change in demand will result in a sharp change in the price of crude.
• C. Within a short span of time, the price of crude oil has fluctuated sharply.
• D. Speculation in oil does not have much of an impact on its price.
• E. None of the above.

Answer 1

The correct option is D Speculation in oil does not have much of an impact on its price.

The phrase means "Speculation in oil does not have much of an impact on its price".