Question

How does low demand for oil affect the Texas economy?

Question 3 options:

Low demand means high prices for oil, which helps the economy grow.


Low demand encourages new exploration for oil, which hurts the economy.


Low demand for oil leads to high demand for solar power, which helps the economy.


Low demand means low prices for oil, which hurts the economy.

Answer 1

Answer:

When oil production slows in Texas, employment and tax revenues decline, and budget cuts at the state and local levels often follow. (Craymer has estimated that the state loses $85 million per year for every $1 decrease in oil prices.)