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

1770 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Define a firm's shutdown point, and explain it intuitively using an example


Distinguish between positive and normative statements


Explain the assumptions behind perfect competition and how firms behave under this market structure.


Discuss‘looserfiscalpolicy’and‘supply-sidereforms’ that may be used by governments of Eurozone countries to increase economic growth.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences