(Supply and Demand) How do you think each of the following affected the world price of oil? (Use basic supply and demand analysis.)
a. Tax credits were offered for expenditures on home insulation.
b. The Alaskan oil pipeline was completed.
c. The ceiling on the price of oil was removed.
d. Oil was discovered in Mexico and the North Sea.
e. Sport utility vehicles and minivans became popular.
f. The use of nuclear power decreased.
Think about whether each event increases or decreases supply or demand for oil and you should be able to figure out the effect upon the price of oil. I'll be happy to critique your thinking, but am quite sure able to do figure this out.
(Supply and Demand) How do you think each of the following affected the world price of oil? (Use basic supply and demand analysis.)
a. Tax credits were offered for expenditures on home insulation.
(decrease demand and decrease price)
b. The Alaskan oil pipeline was completed.
(increase the supply and decrease price)
c. The ceiling on the price of oil was removed.
(decrease)
d. Oil was discovered in Mexico and the North Sea.
(decrease)
e. Sport utility vehicles and minivans became popular. (increase demand and increas price)
(increase)
f. The use of nuclear power decreased.
(increase demand and increase price)
1 answer