As the price of oil fell from$99 a barrel in September 2014 to$53 a barrel by September2015, SaudiArabia's oil revenues fell by 23percent, compared with its 2014 oil revenues of 444.5 billion riyals.

How can you use the information in the news clip to determine whether the demand for Saudi Arabian oil is elastic orinelastic?

With no change in the demand foroil, the demand for Saudi Arabian oil is_______ because_______.

A.

inelastic; although the price of oilfell, Saudi Arabia did not change the quantity of oil it produced

B.

elastic; the percentage change in price is greater than the percentage change in total revenue

C.

inelastic; the fall in the price of oil decreased total revenue

D.

elastic; the fall in the price of oil decreased total revenue

The best estimate of the price elasticity of demand for Saudi Arabian oil is_______ .

A.

0.62

B.

4.3

C.

1.61

D.

0.23

The news article_________ tell us whether the supply of oil is elastic or inelastic because the news clip _______.

A.

does; tells us the decrease in the oil price and the corresponding decrease in the quantity sold

B.

doesnot; contains no data on the quantity of oil supplied