Consider the supply of crude oil on the world market In Augu

Consider the supply of crude oil on the world market. In August 2011, the price of oil was roughly $80 per barrel. Which of the following changes would increase the supply of oil? The oil supply curve would shift to the right if the prices of other petroleum-based products (substitutes) were to increase. the number of oil-producing countries were to decrease. the cost of transporting oil were to increase. future oil prices were expected to be lower. the world price of oil were to increase.

Solution

Supply curve shifts right means production of oil would be more than present. This can happen if future oil prices were expected to be lower.

This happend because Lower prices in the future decrease current demand, but increase current supply. Producers wants to sell maximum amount of oil at higher prices today than the lower prices in future causing increase in current supply.