-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 and potentially cheaper to extract oil, thus increasing the supply of oil. This is represented by a shift in the supply curve to the right (from S₁ to S₂), indicating an increase in supply. The demand curve remains unchanged because the technology affects the production side, not the demand side.

-The Above Figure Shows the Market for Oil