In the run up to the war in Iraq that began in 2003,one of the many concerns raised was that a war could result in a decrease in the supply of oil.At the same time,the U.S.economy was having a hard time recovering from the recession of 2001 and,as a result,incomes of many consumers had decreased (due to layoffs,wage cuts,and so forth).All else constant,it was reasonable to predict,with certainty,that the combination of these two factors would cause the equilibrium:

Question

Quizplus · Accepted Answer

The decrease in supply due to war concerns would lead to a lower equilibrium quantity of oil.

In the Run Up to the War in Iraq That