Rising demand for oil from China and other countries is leading to concerns that there may be a world shortage of oil.
How should a change in the price of oil prevent such a shortage developing?
1 )
Price should fall to reduce demand and encourage a search for more oil.
2 )
Price should fall to reduce supply and encourage a reduction in fuel use.
Price should rise to reduce demand and encourage a search for alternative fuels.
4 )
Price should rise to reduce supply and encourage a switch to alternative fuels.
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