When a crisis in the Middle East reduces the supply of oil, the price system rationally responds by reallocating oil from highest-valued uses to lower-valued uses.
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When a crisis in the Middle East reduces the supply of oil, the price of oil typically increases. This price increase signals to consumers and producers that oil is now scarcer and more valuable. As a result, the price system encourages the reallocation of oil from lower-valued uses (where it is less critical) to higher-valued uses (where it is more essential). This process helps to ensure that the available supply of oil is used in the most efficient manner possible given the new scarcity.