Re: Oil separates from water, but does it sink or float?

Karen

Why, in the first place, are you assuming that the oil is the colored phase?

Oils are less dense than water and there are many clear [and colorable...] 
liquids denser than water [notably dry cleaning solvents such as carbon 
tetrachloride, 1,1,1 trichloroethylene, etc...]

The designer of this desk-top toy has chosen three mutually immiscible liquids, 
dyed two of them and made and interesting demonstration tool.

Are you also sure that the 3 phases are intermixed? I have one similar to yours 
and the two liquids/colors are separated by a thin sheet of plastic.

The only way to know for sure is to destroy the toy and do a subjective 
analysis of each phase.

Ken