Why Was OPEC Unable to Maintain High Oil Prices in the Long

question 12

Multiple Choice

Why was OPEC unable to maintain high oil prices in the long run?

• A)Demand and supply are both elastic in the long run compared to the short run.
• B)Demand and supply are both inelastic in the long run compared to the short run.
• C)Demand is elastic and supply is inelastic in the long run compared to the short run.
• D)Demand is inelastic and supply is elastic in the long run compared to the short run.

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Definitions:

Strategy

A plan of action designed to achieve a long-term or overall aim, typically involving the allocation of resources and decision-making processes.

Corporate Level

Relating to high-level strategic decisions made at the upper echelons of a business organization.

Top Management

The highest level of executives and decision-makers in an organization, responsible for determining its overarching strategy and policies.

Directive

An authoritative instruction or official order given by a person or body with power.