Question 1
During the third week of April, the oil price went as low as
-$40 per barrel. As a microeconomics student, you were asked by your aunt,
Auntie Kiah regarding this ‘strange and unprecedented’ phenomenon. Kindly
explain to her (in the simplest way possible) the following:
a) How is this even possible?
b) b) Can the users (both you
and your Auntie Kiah) benefit from this ‘negative pricing’? In what way?
Sun | Mon | Tue | Wed | Thu | Fri | Sat |
---|---|---|---|---|---|---|
29 | 30 | 1 | 2 | 3 | 4 | 5 |
6 | 7 | 8 | 9 | 10 | 11 | 12 |
13 | 14 | 15 | 16 | 17 | 18 | 19 |
20 | 21 | 22 | 23 | 24 | 25 | 26 |
27 | 28 | 29 | 30 | 31 | 1 | 2 |