What impact do changes in the price of oil have on producers who use oil inputs today as compared to producers who used oil inputs during the OPEC price shock in 1973?
A) greater impact
B) smaller impact
C) no impact
D) similar impact

Question

Quizplus · Accepted Answer

Today, producers often have more alternatives to oil, improved energy efficiency, and better risk management strategies like futures contracts, which can mitigate the impact of changes in oil prices compared to the situation during the 1973 OPEC oil crisis.

What Impact Do Changes in the Price of Oil Have