Question

8. Which of the following will cause a movement along the supply curve for oil? a. New technology to drill underwater in the Gulf of Mexico. b. A change in the price of oil. c. An increase in the number of oil producing firms. d. Government subsidies to oil producers in Wyoming.

Answer 1

Answer:

The correct answer is letter "B": A change in the price of oil.

Explanation:

The supply curve for any good or service responds in front of changes in price. According to the supply law, if the price of a good or service increases so will the quantity supplied moving the supply law to the right. If the price of the good decreases so will the quantity supplied moving the supply curve to the left. The price-quantity supplied relationship is directly proportional.