The figure given below represents the demand and supply conditions of an economy.?Figure 7.3

-Refer to Figure 7.3. Which of the following explains the shift in the supply curve from S₁ to S₂?
A) Decreases in oil supplies as experienced in the 1970s
B) Wage concessions by union members
C) Businesses reducing their profit margins
D) Discoveries of natural gas
E) Increased foreign demand for domestic products

Question

The figure given below represents the demand and supply conditions of an economy.?Figure 7.3
 
-Refer to Figure 7.3. Which of the following explains the shift in the supply curve from S₁ to S₂?
A) Decreases in oil supplies as experienced in the 1970s 
B) Wage concessions by union members 
C) Businesses reducing their profit margins 
D) Discoveries of natural gas 
E) Increased foreign demand for domestic products

Quizplus · Accepted Answer

Decreases in oil supplies as experienced in the 1970s would reduce the supply of oil, shifting the supply curve to the left.

The Figure Given Below Represents the Demand and Supply Conditions