If you were a government official and wanted to raise the price of oil, which of the following actions would you take?
A)Take oil from government storage and sell it on the open market.
B)Encourage producers to drill more wells.
C)Try to lower the price of alternative fuels.
D)Try to lower average family income.
E)Encourage producers to cut back on drilling for oil.

Question

Quizplus · Accepted Answer

By encouraging producers to cut back on drilling for oil, the supply of oil will decrease and thus increase the demand and price for oil.

If You Were a Government Official and Wanted to Raise