Economics (AS & A Level) · Oct / Nov 2023 · Paper 13 · Question 9

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?

1. Amarket change: upward movement along the demand curve; price change: price decreases
2. Bmarket change: downward movement along the demand curve; price change: price increases
3. Cmarket change: supply shifts to the left; price change: price increases
4. Dmarket change: supply shifts to the left; price change: price decreases

As printed in the paper