Assume the Congress approves increased drilling for oil in the U.S.to address the current energy shortage.People who are in favor of this policy argue that,ceteris paribus,this would cause:

Question

Quizplus · Accepted Answer

Increased drilling for oil would lead to a higher supply of oil in the market. According to the law of supply and demand, an increase in supply, with demand remaining constant (ceteris paribus), would lead to a decrease in the equilibrium price and an increase in the equilibrium quantity of oil.

Assume the Congress Approves Increased Drilling for Oil in the U.S.to