How do you think each of the following affected the world price of oil? (use basic demand and supply analysis.)
a. tax credits were offered for expenditures on home insulation.
b. the alaskan oil pipeline was completed.
c. the ceiling on the price of oil was removed.
d. oil was discovered in the north sea.
e. sport utility vehicles and minivans became popular.
f. the use of nuclear power decreased.

The correct answer is the following.

A) Tax credits were offered for expenditures on home insulation. Affected the demand by decreasing it and the price decrease.

B) The Alaskan oil pipeline was completed. Affect the increase of supply and the price and the price decreases.

C) The ceiling on the price of oil was removed. Affect the decrease in demand and the price varies.

D) Oil was discovered in the North Sea. Affect the supply by increasing it and the price decreases.

E) Sport utility vehicles and minivans became popular. Affect the increase of the demand and the price increases.

F) The use of nuclear power decreased. Affect the increase of the demand and the price increases.

Many variables affect the price of oil. International prices are modified constantly and countries should have their provisions in order to prevent drastic changes to their economies due to the fluctuation of international oil practices. The important thing to consider is that not only economic factors affect the price of oil, but also political factors.

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