Question by Ronald Shane: Supply and demand curves/graph regarding oil price rises in the UK?
What happens to the supply or demand curves when the oil price rises in the UK?
According to BBC news- UK inflation rate rises to 3.4% because "Petrol prices have been rising because of the relative strength ...
Question by Ronald Shane: Supply and demand curves/graph regarding oil price rises in the UK?
What happens to the supply or demand curves when the oil price rises in the UK?
According to BBC news- UK inflation rate rises to 3.4% because “Petrol prices have been rising because of the relative strength of the dollar and higher refining costs, as well as the increasing price of oil.”
http://news.bbc.co.uk/2/hi/8631532.stm
So basically is this a shift or movement along the supply or demand curves, and if they shift, what direction? graphically speaking when oil prices rise?
Best answer:
Answer by Woo
a shift in the demand curve to the left, followed by a shift in supply to the left so prices do not fall
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