Which of the Following Is NOT a Reason That the Organization

question 1

Multiple Choice

Which of the following is NOT a reason that the Organization of Petroleum Exporting Countries was more successful at affecting the price of oil than other commodity cartels?

• A)There are a small number of countries with significant oil reserves.
• B)Oil is not a commodity that spoils,so there is no need to sell it off quickly.
• C)Many oil-producing countries have cultural ties to one another.
• D)Members were able to strictly enforce compliance with the organization's policies.
• E)There are few alternative sources of energy to substitute for oil.

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Definitions:

Inelastic Demand

A situation where the demand for a product does not change significantly with a change in price.

Elastic Demand

Reflects how the quantity demanded of a good or service changes in response to a change in price; high elasticity indicates demand is highly sensitive to price changes.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to buy.

Perfectly Elastic

A situation in economic theory where the quantity demanded or supplied responds infinitely to changes in price.