Need help on the effects of high oil prices on demand and supply of certain products?

X country is currently affected by high oil prices in the global market. By prvidng actual examples, explain why demand and supply for certain products are greatly affected while demand and supply for other products are not affected.Need help on the effects of high oil prices on demand and supply of certain products?
High oil prices will affect some goods more than others.





Consider oil as having two main effects on prices


1) high oil prices lead to higher transport costs (for petrol etc), so products that need to be transported further will be heavily affected by an oil price hike.


2) oil as a manufacturing resource, such as most plastic goods, which are made in part of oil. Naturally, if oil is more expensive, the cost of producing these goods will rise.





Given these premises, goods that are made using oil and/or need transporting will rise in price when oil does. Conversely, those that are not transported as much won't rise (as much).





As for supply and demand, it is this effect that in turn impacts supply and demand, through price. Higher priced products almost always are demanded less (downwards sloping Demand Curve), so those products reliant on oil will be demanded less.





Examples. Plastic bags (oil intensive) will rise in price, and lower in demand if oil prices go up.





Locally eaten organically grown (no oil using machines...) food will not be affected as much.