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

OA
Answered by Olasubomi A. Economics tutor

2165 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain using a diagram the price/output of a firm competing in a perfectly competitive market during the long run. Is this equilibrium point beneficial?


Explain how changes in prices allocate scarce resources in a market economy [12 marks]


Using an example, explain the term ‘factors of production’. (5 Marks)


Must I take Economics for my GCSES before A-levels? If not, will the catching up be difficult?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning