In the event of an oil supply disruption, the price system provides incentives to allocate oil away from low-value uses.

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When there is a disruption in oil supply, the price of oil tends to increase due to the decrease in availability. Higher prices provide an incentive for consumers and producers to conserve oil and allocate it away from low-value uses, such as leisure driving, towards higher value uses, such as transportation for essential goods and services. This is because consumers and producers are motivated by the desire to minimize costs and maximize profits, respectively. Therefore, the price system provides incentives for the efficient allocation of oil during supply disruptions.

In the Event of an Oil Supply Disruption, the Price