An expected increase in the market price of oil in the coming year is likely to: shift the supply curve of oil to the left in the current year. shift the supply curve of oil to the right in the current year. shift the demand curve for oil to the left in the current year. cause no changes in the demand and supply curves of oil in the current year.

Question

Business

Madelyn Cooley

26 July, 08:36

An expected increase in the market price of oil in the coming year is likely to: shift the supply curve of oil to the left in the current year. shift the supply curve of oil to the right in the current year. shift the demand curve for oil to the left in the current year. cause no changes in the demand and supply curves of oil in the current year.

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Adam Tran · Answer 1

cause no changes in the demand and supply curves of oil in the current year.

Explanation:

Changes in price don't generate shifts in the supply and demand curves in the short term. It generates a movement along the curves as non price changes are the ones that generate a shift in these curves. If the price of the oil increases, the demand quantity falls which will cause a movement along the demand curve. Also, this situation will increase the supply quantity which also generates a movement along the supply curve.