Answer:
Option (c) is correct.
Explanation:
If there is an increase in the cost of pumping oil, this means that the cost of production of oil increases. Hence, this will cause the supply curve of oil which shifts leftwards and leave the demand curve unchanged. This will only cause a movement along the demand curve not a shift which means that there is a fall in the quantity demanded.
Therefore, the demand for oil and gasoline will not necessarily change.
