In retaliation for U.S.support for Israel during the Arab-Israeli War, OPEC countries stopped selling oil to the United States.For the United States, this embargo 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 supply curve of oil shifted inwards due to the OPEC embargo, as there was a decrease in the quantity of oil supplied to the United States. This led to an increase in oil prices and a reduction in the quantity of oil demanded, causing the demand curve to shift inwards as well.

In Retaliation for U