OPEC failed to maintain a high price of oil in the long run, partly 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 long run, both consumers and producers have more time to adjust to price changes, making the demand and supply of oil more elastic. Consumers can switch to alternative energy sources, and producers can invest in new oil fields or alternative extraction methods, reducing OPEC's ability to maintain high prices.

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