Practise explaining how production costs, productivity, technology, subsidies and firm entry or exit shift supply curves using CAIE Economics AS questions.
The pressure to reduce the use of fossil fuels has led to oil companies reducing the level of investment in the exploration of new reserves.
What will be the long-run effect of such a policy on the market for oil?
market change
price change
upward movement
along the demand curve
price decreases
downward movement
along the demand curve
price increases
supply shifts to the left
price increases
supply shifts to the left
price decreases
C