Whenever OPEC attempts to influence the price of oil by significantly altering production, economists refer to this type of event as a ________.
A) demand shock
B) equilibrium event
C) expanding commodity event
D) supply shock

Question

Quizplus · Accepted Answer

Whenever OPEC significantly alters its production, it creates a disruption in the supply of oil, leading to a supply shock. This can cause the price of oil to rise or fall depending on whether they increase or decrease production, respectively.

Whenever OPEC Attempts to Influence the Price of Oil by Significantly