Many public utilities burn oil to generate electricity.If the price of oil increases,we expect a shift to the _____ in the _____ curve for _____ and a _____ price for electricity.
A)right;supply;electricity;lower
B)left;supply;electricity;higher
C)right;demand;oil;higher
D)left;demand;oil;lower

Question

Quizplus · Accepted Answer

When the price of oil increases, the cost of producing electricity also increases, causing a decrease in supply of electricity. This results in a leftward shift in the supply curve for electricity, causing a higher price for electricity.

Many Public Utilities Burn Oil to Generate Electricity