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

2107 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What are the trade-offs with other macroeconomic policy objectives of a fall in the unemployment rate?


Explain what is meant when it is said that there are inefficiencies in the production of goods and the allocation of resources.


How are inflation and unemployment linked?


1) Evaluate potential strategies that could be adopted by an economy that is heavily dependent on primary products to aid development (25 marks)


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