OPEC successfully raised the world price of oil in the 1970s and early 1980s,primarily due to
A)an inelastic demand for oil and a reduction in the amount of oil supplied.
B)a reduction in the amount of oil supplied and a world-wide oil embargo.
C)a world-wide oil embargo and an elastic demand for oil.
D)a reduction in the amount of oil supplied and an elastic demand for oil.

Question

Quizplus · Accepted Answer

OPEC was able to raise oil prices because the demand for oil was inelastic, meaning consumers did not significantly reduce their consumption despite higher prices, combined with a reduction in the amount of oil supplied.

OPEC Successfully Raised the World Price of Oil in the 1970s