The rapid rise in oil prices during 2007-2008 can be explained by noting the fact that
A) the supply of oil increased more rapidly than the demand for oil increased
B) the demand for oil increased more rapidly than the supply for oil increased
C) the demand for oil decreased at the same time that the supply of oil increased
D) the quantity demanded of oil increased more rapidly than the quantity supplied of oil increased
E) the quantity supplied of oil increased more rapidly than the quantity demanded of oil increased

Question

Quizplus · Accepted Answer

The rapid rise in oil prices during 2007-2008 can be explained by the fact that the demand for oil increased more rapidly than the supply for oil increased. This was due to factors such as strong economic growth in developing countries, particularly China and India, and geopolitical tensions in oil-producing regions. As demand outstripped supply, prices increased rapidly.

The Rapid Rise in Oil Prices During 2007-2008 Can Be