How would the economies of Saudi Arabia and Iraq be affected if people in other countries stopped using as much oil as they do today?

Question

How would the economies of Saudi Arabia and Iraq be affected if people in other countries stopped using as much oil as they do today?

A.

Their economies would suffer as the price of oil went up and their profits went down.
B.

Their economies would improve as the price of oil rose and jobs in the oil industry were created.
C.

Their economies would suffer as other countries bought less of the oil that Saudi Arabia and Iraq produce.
D.

Their economies would not be seriously affected because they are very diverse.

Answer 1

A. Their economies would suffer as the price of oil went up and their profits went down. Both Saudi Arabia and Iraq heavily rely on oil exports as a major source of revenue for their economies. If people in other countries stopped using as much oil as they do today, the demand and price for oil would decrease, leading to a decline in profits and economic growth for these countries.