Asked by Ogheneruno Siakpebru on Jul 21, 2024
Verified
The effect on the market for heating oil of a leftward shift of supply would be
A) a shortage of heating oil.
B) a surplus of heating oil.
C) a decrease in the quantity of heating oil sold and in its price.
D) an increase in the price of heating oil and a decrease in the quantity sold.
Shift of Supply
A change in the quantity of a good that suppliers are willing and able to sell in the market at any given price, often due to changes in production costs or technology.
Heating Oil
A low viscosity, liquid petroleum product used as a fuel oil for furnaces or boilers in buildings. It is a major component in home heating solutions in colder regions.
- Comprehend the role of supply in market equilibrium.
- Know the impact of supply shifts on market outcomes.
Verified Answer
VR
Vivienne RozennJul 24, 2024
Final Answer :
D
Explanation :
A leftward shift of supply means that there is a decrease in the quantity of heating oil supplied at every given price level. This would cause an increase in the price of heating oil and a decrease in the quantity sold, as suppliers will need to increase prices in order to maintain profitability with their reduced supply levels.
Learning Objectives
- Comprehend the role of supply in market equilibrium.
- Know the impact of supply shifts on market outcomes.
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