Why was OPEC successful in raising the world price of oil in the 1970s and early 1980s
A)There was an inelastic demand for oil and a reduction in the amount of oil supplied.
B)There was a reduction in the amount of oil supplied and a worldwide oil embargo.
C)There was a worldwide oil embargo and an elastic demand for oil.
D)There was a reduction in the amount of oil supplied and an elastic demand for oil.

Question

Quizplus · Accepted Answer

OPEC was successful because the demand for oil was inelastic, meaning consumers were not significantly reducing their consumption despite price increases, and there was a reduction in the amount of oil supplied, which further drove up prices.

Why Was OPEC Successful in Raising the World Price of Oil