An increase in the price of oil is also a signal to oil suppliers to invest more in exploration, to search for alternatives, and to increase recycling.

Question

Quizplus · Accepted Answer

When the price of oil increases, oil suppliers are incentivized to invest in exploration to find new sources of oil, search for alternative and renewable energy sources, and improve recycling technologies. This is because higher prices make it more profitable for suppliers to invest in these efforts to meet the growing demand for energy. Therefore, an increase in the price of oil is indeed a signal for suppliers to invest more in exploration, alternative energy, and recycling.

An Increase in the Price of Oil Is Also a Signal