Which of the following will cause a movement along the supply curve for oil?
A)new technology to drill oil underwater in the Gulf of Mexico
B)a change in the price of oil
C)an increase in the number of oil-producing firms
D)government subsidies to oil producers in Wyoming

Question

Quizplus · Accepted Answer

A change in the price of oil will cause a movement along the supply curve. As the price of oil increases, producers are willing and able to supply more of it, causing a movement up along the supply curve. As the price of oil decreases, producers are willing and able to supply less of it, causing a movement down along the supply curve.

Option A is incorrect because it would shift the supply curve, rather than causing a movement along the curve.

Option C is incorrect because an increase in the number of oil-producing firms would also shift the supply curve.

Option D is incorrect because government subsidies would not cause a movement along the supply curve, but rather a shift in the curve to the right (increased supply).

Which of the Following Will Cause a Movement Along the Supply