-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

Question

Quizplus · Accepted Answer

The development of a new deep sea drilling technology would make it easier or more efficient to extract oil, thus increasing the supply of oil. This is represented by a shift of the supply curve to the right (from S1 to S2). The demand curve does not shift because the technology change affects the production side, not the consumer demand side.

-The Above Figure Shows the Market for Oil