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

1931 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

The UK suffers from a persistent balance of trade deficit. what can the government do to rectify this and balance the trade figures?


Explain the difference between the Monetarist and Keynesian views of unemployment


Explain the statement that oligopolistic markets such as supermarkets or car manufacturers can be defined in terms of market structure or market conduct.


Discuss how a business may practice 3rd degree price discrimination


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:

© 2025 by IXL Learning