Final answer:
The Organization of Petroleum Exporting Countries (OPEC) was formed to unify petroleum policies and secure fair prices, but its actions led to inflated prices. The oil embargo of 1973 played a significant role in causing these inflated prices. OPEC's ability to continue colluding goes beyond economic incentives.
Step-by-step explanation:
The organization that was formed to unify petroleum policies and secure fair prices but ended up causing inflated prices was the Organization of Petroleum Exporting Countries (OPEC). OPEC was created as an economic alliance in the 1960s to regulate the global oil market.
However, when OPEC raised the price of oil dramatically in the mid-1970s, it resulted in inflated prices for petroleum products.
The oil embargo of 1973 played a significant role in causing inflated prices. OPEC members, including oil-producing nations in the Middle East, restricted production to increase the price of oil and make oil-importing nations dependent on the oil-producing nations.
This led to a sharp increase in fuel prices, gas stations running out of fuel, and the implementation of measures like fuel rationing.
Although OPEC still exists today, it is important to note that the reasons for OPEC's ability to continue colluding go beyond economic incentives. Non-economic reasons such as political alliances, geopolitical considerations, and the desire for collective bargaining power can also contribute to OPEC's unity.