High oil prices tend to:

Question

Quizplus · Accepted Answer

High oil prices tend to increase the cost of production for many goods and services, particularly those that are heavily reliant on transportation or energy. This can lead to a reduction in demand for these products, as consumers choose to cut back on their spending. However, some products may see an increase in demand, such as those that are substitutes for oil or those that become relatively cheaper in comparison (e.g. public transportation, bicycles, renewable energy). Overall, the effect on demand will depend on the specific circumstances and the elasticity of demand for different products.

High Oil Prices Tend To