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Question
what will oil companies do if they expect the price of oil to be higher in the future?
they will ask government for a subsidy
they will invest in electric cars
they will save oil to sell in later
they will supply more oil now
If oil - companies expect higher future oil prices, they have an incentive to hold onto their oil reserves to take advantage of the higher prices later. Asking for a subsidy is not directly related to future price expectations, investing in electric cars is a long - term strategic move not directly tied to short - term price expectations, and supplying more oil now would reduce their ability to sell at higher future prices.
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They will save oil to sell in later