Suppose the Price of Oil Is Falling Due to a Drop-Off

question 15

Essay

Suppose the price of oil is falling due to a drop-off in demand after the summer driving season. Explain what a group of oil- producing nations (like OPEC), that control a significant amount of the world's oil supplies, could do in order to keep prices (and hence profits) high.
B. OPEC nations would want to decrease the supply of oil on world markets, since a decrease in supply would lead to an increase in the price of oil.

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Definitions:

Six-figure Accuracy

Precision that extends to six digits.

Overline

In mathematics, a line drawn over symbols to indicate that they are considered together, such as in the notation for a repeating decimal.

Denominator

The number under a division line in a fraction. The denominator is also known as the divisor.

Unknown Variable

A symbol in mathematics that represents a number or value which is not yet identified.