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What method does OPEC use to increase its profits?

A. Limiting the supply of oil
B. Reducing the demand for oil
C. Reducing the price of oil
D. Increasing the supply of oil
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User Tammara
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2 Answers

5 votes

Answer:

A is correct

Step-by-step explanation:

<3

User Mefathy
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3 votes

Answer:

A. Limiting the supply of oil

Step-by-step explanation:

OPEC is the organization of Petroleum exporting countries. It is made up of 13 countries.

The goal of OPEC is to be a dominant force in the oil and gas industry world wide.

  • Most of the countries that makes up OPEC have an economy largely dependent on the oil industry.
  • Therefore, they use market forces to control price action.
  • Often time, they limit supply through a quota system on member countries which ensures too much oil is not pumped out.
  • Too much oil can cause a glut in production and decrease in revenue.
User ExtremeSwat
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