Following the sharp increases in oil prices in the United States caused by the OPEC oil embargo of 1973-1974, U.S.automakers started building smaller, more fuel-efficient cars.This development caused the
A)demand curve for oil to shift out.
B)demand curve for oil to shift in.
C)supply curve of oil to shift out.
D)supply curve of oil to shift in.

Question

Quizplus · Accepted Answer

The shift toward smaller, more fuel-efficient cars meant that the overall demand for oil by U.S. automakers decreased. This shift in demand caused the demand curve for oil to shift in, meaning that at any given price, the quantity of oil demanded by U.S. automakers was lower than before. It did not cause a shift in the supply curve of oil.

Following the Sharp Increases in Oil Prices in the United