Assume there is a reduction in the shipments of petroleum products due to political tension in the Persian Gulf.Which of the following would not be expected to happen?

Question

Quizplus · Accepted Answer

The demand curve shifting to the left would indicate a decrease in demand, which is not expected simply because of a reduction in supply due to political tensions. Instead, the other options (A, B, C) are direct consequences of reduced supply, such as price increases, shortages at the original price, and a decrease in the quantity demanded due to higher prices, not a shift in the demand curve itself.

Assume There Is a Reduction in the Shipments of Petroleum