possible effects of a higher oil price
possible effects of a higher oil price kE03O
An increase of 25 per cent in the price of oil would have numerous results. First, it would lead to oil consumption falling, as a result this rises the demand for alternative fuel. Furthermore, an increased investment in oil exploration results in an increased demand for oil rigs. In addition, the cost of transport and freight rises leading to airline profits falling. Lastly, there would be reduced demand for large cars, resulting in increased demand for small cars.
An increase of 25 per cent in the price of
oil
would have numerous results.
First
, it would lead to
oil
consumption falling,
as a result
this rises the
demand
for alternative fuel.
Furthermore
, an increased investment in
oil
exploration results in an increased
demand
for
oil
rigs.
In addition
, the cost of transport and freight rises leading to airline profits falling.
Lastly
, there would be
reduced
demand
for large cars, resulting in increased
demand
for
small
cars.
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