Which of the following was not a reason OPEC failed to keep the price of oil high?
A)Over the long run, producers of oil outside of OPEC responded to higher prices by increasing oil exploration and by building new extraction capacity.
B)Consumers responded to higher prices with greater conservation.
C)Consumers replaced old inefficient cars with newer efficient ones.
D)The agreement OPEC members signed allowed each country to produce as much oil as each wanted.

Question

Quizplus · Accepted Answer

The failure of OPEC to keep oil prices high was not due to an agreement allowing each member country to produce as much oil as they wanted. In fact, OPEC's strategy involves coordinating production levels among member countries to influence oil prices. The other options (A, B, C) are actual reasons that contributed to the difficulty in maintaining high oil prices, such as increased production outside of OPEC, conservation efforts, and the adoption of more efficient technologies by consumers.

Which of the Following Was Not a Reason OPEC Failed