After several years of slow economic growth, world demand for petroleum began to rise rapidly in the 1990s. Much of the increase in demand was met by additional supplies from sources outside OPEC. OPEC during this time was unable to restrain output among members in its effort to lift oil prices. What best describes these events?
A) The rise in demand shifted the demand for oil to the right. OPEC actions shifted the demand for oil back to the left.
B) The rise in demand shifted the demand for oil to the right. As price rose, supply of oil also rose.
C) The rise in demand shifted the demand for oil to the right. As price rose, quantity of oil supplied rose.
D) The rise in demand reflects a movement down along the demand curve as supply shifted to the right when suppliers produced more oil.

Question

Quizplus · Accepted Answer

The rise in demand shifted the demand curve to the right, leading to higher prices, which in turn increased the quantity of oil supplied.

After Several Years of Slow Economic Growth, World Demand for Petroleum