All Else Equal, When the Demand for Oil Increases, the Price

question 95

Essay

All else equal, when the demand for oil increases, the price will increase. Some economists say that this is only a short-run worry because in the long run a more elastic supply curve will benefit consumers. Do you agree? Explain.

---

Definitions:

Milgram Studies

A series of psychological experiments conducted by Stanley Milgram in the 1960s to measure individuals' willingness to obey authority figures, even when instructed to perform actions conflicting with their personal conscience.

Legitimacy

The general belief that a rule, institution, or leader has the right to govern or command.

Authority Figure

An individual who holds power or influence over others, often in a specific context like a workplace, educational setting, or family.

Door-In-The-Face Technique

A persuasive strategy that involves making a large request that is expected to be refused in order to increase the likelihood of compliance with a smaller request.