How are higher natural gas and coal prices likely to affect oil prices? (Drawa set of supply and demand curves to help you answer the question.) O The demand curve for oil will shift down and to the left and the price of oil will fall. O The supply curve for oil will shift down and to the right and the price of oil will fall. O The demand curve for oil will shift up and to the right and the price of oil will rise. The supply curve for oil will shift up and to the left and the price of oil will fall.
How are higher natural gas and coal prices likely to affect oil prices? (Drawa set of supply and demand curves to help you answer the question.) O The demand curve for oil will shift down and to the left and the price of oil will fall. O The supply curve for oil will shift down and to the right and the price of oil will fall. O The demand curve for oil will shift up and to the right and the price of oil will rise. The supply curve for oil will shift up and to the left and the price of oil will fall.
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 25P
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The Wall Street Journal reported the following news:
"Higher prices for natural gas and coal are forcing power-generation companies and manufacturers to consider switching to oil. The International Energy Agency (IEA) increased its
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