OPEC failed to maintain a high price of oil in the long run because both the supply of oil and the demand for oil are more elastic in the long run than in the short run.

Question

Quizplus · Accepted Answer

In the short run, the supply and demand for oil are relatively less elastic, meaning that changes in price will have a limited impact on the quantity supplied and demanded. However, in the long run, both the supply and demand become more elastic as producers and consumers have more time to adjust. This makes it more difficult for OPEC to maintain a high price of oil over a sustained period.

OPEC Failed to Maintain a High Price of Oil in the Long