A recent news story reported that the Organization of Petroleum Exporting Countries is expected to decrease the supply of oil next summer.Summer is traditionally a time of increased demand for oil because of vacation travel.What would be the combined effect of these two events on the summer market for gasoline?

Question

Quizplus · Accepted Answer

The decrease in oil supply by OPEC and the increased demand during summer would lead to an increase in gasoline prices due to the higher demand and lower supply. However, the change in quantity is unpredictable because it depends on the extent of the supply decrease and demand increase, as well as how consumers and other producers respond to the price change.

A Recent News Story Reported That the Organization of Petroleum