Final answer:
Various events such as increased fuel efficiency, cold winters, new oil discoveries, and economic slowdowns can affect the market for oil by altering the equilibrium price and quantity, represented by shifts in supply and demand curves.
Step-by-step explanation:
The market for oil is influenced by various events that can affect the equilibrium price and quantity of oil. Here's how each event might impact the supply and demand for oil:
- a. As cars become more fuel efficient, demand for oil decreases, leading to a potential decrease in oil prices and a leftward shift in the demand curve on a supply and demand diagram.
- b. An exceptionally cold winter increases the demand for oil for heating, potentially raising oil prices and causing a rightward shift in the demand curve.
- c. A major discovery of new oil, such as off the coast of Norway, increases the supply of oil, possibly lowering oil prices and causing a rightward shift in the supply curve.
- d. When economies of major oil-using nations slow down, the demand for oil decreases, which could lead to lower oil prices and a leftward shift in the demand curve.