What would be effect on the price of oil due to an increase in cars used in the UK

using supply & demand diagram, show that the price of oil will rise due to an increased demand for oil. ceterus paribus assumption being made. can discuss other factors that may or may not make this effect so pronounced, such as the size of the increased demand, whether or not these cars are hybrid cars. could discuss whether taxes on oil would dampen this demand despite rise in demand for cars.

but main key is to use diagram for this type of question at a level

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Answered by Olasubomi A. Economics tutor

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