Question
In: Economics
Oil is a resource used by many manufacturers. Which graph illustrates the effects of a hurricane that destroys most of the nation's oil refining capabilities?
Oil is a resource used by many manufacturers. Which graph illustrates the effects of a hurricane that destroys most of the nation's oil refining capabilities?
Solutions
Expert Solution
The correct option is A
Oil is a resource, it is an input which is used into the production by many manufacturers. When hurricane destroys oil refining capabilities, availability of oil will be less in quantity. Hence the supply will be less and the supply curve will shift leftwards. Therefore, the correct y is A, where the supply curve is been shifted from S1 to S2.
Rahul Sunny answered 2 years agoRelated Solutions
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A country experiences severe storms which destroys its main
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