Figure 11.1:
-In Figure 11.1,ceteris paribus,if businesses experience higher costs for transporting goods because of an increased price for imported oil,the new equilibrium is likely to occur at:

Question

Figure 11.1: 
-In Figure 11.1,ceteris paribus,if businesses experience higher costs for transporting goods because of an increased price for imported oil,the new equilibrium is likely to occur at:

Quizplus · Accepted Answer

Higher costs for transporting goods due to increased prices for imported oil would likely lead to a decrease in supply, as it becomes more expensive for businesses to produce and transport their goods. This decrease in supply, with demand remaining constant (ceteris paribus), would lead to a higher equilibrium price and a lower equilibrium quantity, which is best represented by option C.

Figure 11.1: -In Figure 11.1,ceteris Paribus,if Businesses Experience Higher Costs for Transporting