According to the law of supply and demand, what would occur if the supply of oil decreased, but the demand remained the same?

A) Oil prices would increase

B) Oil prices would decrease

C) Oil usage would increase

D) Oil usage would decrease

Question

Andreas Schaefer

4 August, 10:16

+2

Answers (1)

Know the Answer?

Mayra Murray · Answer 1

The answer is A.

Since there is less oil and the same demand, companies want to compensate for the revenue they would make if they had enough oil.

According to the law of supply and demand, what would occur if the supply of oil decreased, but the demand remained the same?A) Oil prices would increaseB) Oil prices would decreaseC) Oil usage would increaseD) Oil usage would decrease