ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A fall in crude-oil prices affects the input cost of producing these goods. Thus, a fall crude oil prices have a positive impact on the stocks of these companies. A rise in the transportation cost: A rise or fall in crude oil prices affects the transportation cost of goods.

Detailed explanation-2: -A global market for fossil fuels That means that if the supply of crude oil is less than the demand for fossil fuels, then the price of gasoline will rise. If there is a glut of crude, then the price of gasoline will fall accordingly.

Detailed explanation-3: -Because crude oil is the main ingredient in gasoline, changes in crude oil prices are reflected in changes in gasoline prices. Note: Crude oil is usually measured per barrel. One barrel = 42 gallons. Prices are end of monthly period.

Detailed explanation-4: -When gasoline prices increase, the amount a consumer is willing to pay for a more fuel-efficient vehicle should increase. In fact, there is evidence that when gasoline prices increase, demand for less fuel-efficient vehicles falls, as consumers demand higher fuel economy to reduce the cost of driving.