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.
economics
Description
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?
