Asked by SamanthaRey Colón on May 28, 2024
Verified
The OPEC oil cartel has difficulty maintaining high prices in the long run because the supply of oil is more inelastic in the long run than in the short run.
OPEC Oil Cartel
An international organization of oil-producing countries that coordinates and unifies the petroleum policies of its member states to stabilize oil markets and prices.
Inelastic
Describing demand that does not significantly change with the price changes of a good or service.
- Pinpoint the determinants that influence the responsiveness of prices in terms of supply and demand.
Verified Answer
PS
Preety SumraMay 28, 2024
Final Answer :
False
Explanation :
In the long run, the supply of oil becomes more elastic as producers have more time to adjust to price changes, making it harder for OPEC to maintain high prices.
Learning Objectives
- Pinpoint the determinants that influence the responsiveness of prices in terms of supply and demand.