Question

Economic growth in China has led to more Chinese people owning cars, which: increased demand for oil but decreased supply, causing oil prices to increase rapidly. increased demand and supply of oil, causing oil prices to increase rapidly. increased demand for oil, causing oil prices to rise. decreased demand for oil, causing oil prices to rise.

Answer 1

Economic growth in China has led to more Chinese people owning cars, which "increased demand for oil, causing oil prices to rise".

Answer: Option C

Explanation:

Economic growth resulted from efforts made by Chinese population, imports and exports, tax collection etc, which allow people to invest more in buying new goods and services. Here for example if the market of car is increasing on development of economy than oil demand will increase, and after sometime it may lead to oil crisis. It is the common understanding in economy that the thing which become more in market demand, will always face crisis within completion of one cycle.