An Expected Increase in the Market Price of Oil in the Coming

question 103

Multiple Choice

An expected increase in the market price of oil in the coming year is likely to ________ in the current year.

• A) shift the supply curve of oil to the left
• B) shift the supply curve of oil to the right
• C) shift the demand curve for oil to the left
• D) cause no changes in the demand and supply curves of oil

---

Definitions:

Inverse Supply

Displaying how supply levels adjust based on varying price points; this model inversely associates the supply quantity with its price.

Inverse Demand

A rephrased definition: It refers to the relationship that shows the price of a good as a function of the quantity demanded, essentially the inverse function of a demand curve.

Tax

A required economic dues or other form of assessment exacted from a taxpayer by government authorities meant to finance government activities and assorted public costs.

Excess Supply

Occurs when the quantity of a good or service supplied is greater than the quantity demanded at a given price.