153k views
0 votes
If OPEC decided to cut oil production for the coming year, what would be the MOST LIKELY effect? A) prices would not change B) oil prices would probably rise Eliminate C) oil prices would probably decline D) the price for substitute products would decline

User Abhilashv
by
7.2k points

2 Answers

4 votes

Answer:

the answer is b

Step-by-step explanation:

User InGeek
by
8.2k points
2 votes

The correct answer is B.

According to the laws that describe the forces of supply and demand, if the quantity provided by producers decreases, and the amount demanded stays equal, there would be an excess of demand and the prices will rise in order to correct such a market desequilibrium . In fact, OPEC uses this strategy of cutting total production when they feel that prices are lowering, with the objective of enhancing them.

User Rotem Tamir
by
8.8k points