Business help!?!?

Question

a. What is the major factor that affects the supply of oil? (Hint: It’s the same major factor affecting the demand of oil.)

b. If producers find additional oil reserves, what will happen to the price of oil?

c. If producers must extract oil from more costly wells, what will happen to the price that you pay to fill up your gas tank?

d. If China’s economy continues to expand rapidly, what will happen to the price of oil?

e. If drivers in the United States start favoring fuel-efficient cars over SUVs, will gas be cheaper or expensive?

f. In your opinion, will oil producers be able to supply enough oil to meet the increasing demand for oil-related products?

Answer 1

Oil is limited in the word, so the price will not fall ,many countries are dedicating  themselves to research energy sources.

Answer 2

a)

Availability

Resources of production

Demand for oil, prices

Investments

b)

May fall a bit

c)

It will increase

d)

It will increase

e)

Cheaper

f)

In short-run - yes

In long-run - it's not renewable resource.