A) The prediction that population growth and growing affluence would outstrip supply would mean rising prices over time due to oil shortages. B) Both the 1970s and the 2000s oil price hikes were due to the demand curve shifting to the right.C) The sharp fall in the oil price after the global financial crisis of 2008 was due to the supply curve shifting to the right.D) The prediction that technological advancement to find new resources and extract them more efficiently would outweigh increases in demand would mean rising prices over time due to oil shortages. The figure below shows the world oil price (in 2014 prices) and global oilconsumption. Based on this information, which of the following statements iscorrect?2008 Start of globalfinancial crisis1979-80Second oil shock140120,0001990120Dissolution1918End of WWI1973-74First oilshock1945of the SovietUnionEnd of WWII100801929 Start of GreatDepression60,000604030,0001861 1871 1881 1891 1901 1911 1921 1931 1941 1951 1961 1971 1981 1991 2001 2011YearPrice per barrel, P ($ 2014 per barrel)20Oil consumption (ratio scale: thousands of barrels)

Graph represent world oil price and global oil consumption. Prices per barrel are taken on Y-axis…

Answered: A) The prediction that population…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A) The prediction that population growth and growing affluence would outstrip supply would mean rising prices over time due to oil shortages.

B) Both the 1970s and the 2000s oil price hikes were due to the demand curve shifting to the right.

C) The sharp fall in the oil price after the global financial crisis of 2008 was due to the supply curve shifting to the right.

D) The prediction that technological advancement to find new resources and extract them more efficiently would outweigh increases in demand would mean rising prices over time due to oil shortages.

The figure below shows the world oil price (in 2014 prices) and global oil
consumption. Based on this information, which of the following statements is
correct?
2008 Start of global
financial crisis
1979-80
Second oil shock
140
120,000
1990
120
Dissolution
1918
End of WWI
1973-74
First oil
shock
1945
of the Soviet
Union
End of WWII
100
80
1929 Start of Great
Depression
60,000
60
40
30,000
1861 1871 1881 1891 1901 1911 1921 1931 1941 1951 1961 1971 1981 1991 2001 2011
Year
Price per barrel, P ($ 2014 per barrel)
20
Oil consumption (ratio scale: thousands of barrels)

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