A higher petrol price encourages firms to drill and refine more, so qu…

Question

A higher petrol price encourages firms to drill and refine more, so quantity supplied:

Accepted Answer

C. Rises

1. A higher price makes production more profitable.
2. More profit draws more output into the market.
3. So the quantity supplied rises.
_Source: OpenStax Principles of Microeconomics 3e, Chapter 3, Demand and Supply._

Answer

Holds

Answer

Halves

Answer

Falls

A higher petrol price encourages firms to drill and refine more, so quantity supplied:

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