PRC-3 · Chapter 10 · Question 18 of 70
A cartel of oil-producing nations decides to artificially restrict the pumping of oil to half of the normal capacity. What is the immediate graphical effect?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The supply curve for oil shifts left
Explanation
Withholding supply directly reduces the quantity available at every price point, representing an inward (leftward) shift of the supply curve.
More Demand, Supply and Market Equilibrium MCQs
- Q20At the point where the downward-sloping demand curve intersects the upward-sloping supply curve, the market achieves a state where:
- Q21Because of a highly successful marketing campaign, coffee becomes the most popular beverage in the nation. Assuming the price of coffee…
- Q22If the market price of laptops drops from Rs. 80,000 to Rs. 60,000 during a massive sale, consumers will naturally buy more. What economic…
- Q23Beef and chicken are substitute meats. If a viral disease severely reduces the chicken population, causing the price of chicken to triple…
- Q24Printers and printer ink cartridges are consumed together. If a tech company suddenly decides to give away its printers for free, what…