Asked by Daylanie Flores on Jul 17, 2024
Verified
When the representatives of the OPEC countries met in March 1999 and decided to reduce the amount of oil each country would produce,the result was
A) the world demand for oil fell.
B) the world supply of oil fell.
C) the price of oil fell.
D) All of the choices were results of this meeting.
World Supply
World supply refers to the total quantity of a good or service that is available for purchase on the global market.
OPEC Countries
Nations that are members of the Organization of the Petroleum Exporting Countries, known for their significant role in global oil production and prices.
- Discern the causes behind shifts in the supply curves.
- Comprehend the influence of supply adjustments on outcomes within the market.
Verified Answer
DH
Dominic Holiday
Jul 19, 2024
Final Answer :
B
Explanation :
When OPEC countries decide to reduce the amount of oil each country produces, it directly leads to a decrease in the world supply of oil. This action does not inherently change the demand for oil or immediately cause the price of oil to fall; instead, it can lead to higher prices due to reduced supply.
Learning Objectives
- Discern the causes behind shifts in the supply curves.
- Comprehend the influence of supply adjustments on outcomes within the market.
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