This written assignment will cover the topics demand and supply and the implication of elasticity....

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This written assignment will cover the topics demand and supply and the implication of elasticity. Question: In the 1970s, members of OPEC (Organization of the Petroleum Exporting Countries) decided...

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This written assignment will cover the topics demand and supply and the implication of elasticity.
Question:
In the 1970s, members of OPEC (Organization of the Petroleum Exporting Countries) decided to raise the world price of oil in order to increase their incomes. These countries accomplished this by jointly reducing the amount of oil they supplied.
From 1973 to 1974, the price of oil (adjusted for overall inflation) rose more than 50%. By 1990, the price of oil (adjusted for overall inflation) was back to where it was in 1970.
Instructions:
To answer the given question, research on the trend for prices of oil from 1970 – 1990. Apply the concept of demand, supply and elasticity to analyse the trend. Draw graphs and explain them.
Why did OPEC fail to keep the price of oil high?
Learning Outcomes:

a) Analyse, individually and in teams, the role of fundamental micro- and macroeconomic principles in business decision-making.
b) Analyse the impact of industry competition on individual businesses.
c) Analyses, from an economic and ethical perspective, business behaviors in a national and global context.
d) Analyse the impact of monopolies and monopolistic competition within an industry.
e) Evaluate the impact on industry of manipulations of economic factors by the public sector.
f) Communicate complex economic concepts to business professionals.

Wikipedia and Investopedia are not acceptable sources
Diagrams drawn using a drawing package that produces images acceptable to Word
Use the APA 6th Edition Referencing style.
Reference list, appendices and calculations are not included in word count.

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Answered Same Day Dec 26, 2021

Robert · Accepted Answer

Answer: 
 OPEC (organization of the petroleum export countries) main purpose is to organize 
and join the petroleum policies of its associate Countries and make sure the stabilization of 
oil markets for secure an well-organized, financial and standard delivery of petroleum to 
clients so that  sound income to producers and the reasonable return on capital for those 
investing in the petroleum industry. In these days OPEC members jointly supply the 43% of 
the World’s crude oil production. If we will say about the reserve of the crude oil of the 
world, together OPEC’s member have contribution of the 81% of the world. OPEC member 
countries total monitoring and deciding the collectively production of the crude oil and it 
related policies. On annual basis members of the organization of the petroleum export 
countries meet twice, in March and in September to decide the OPEC’s output level. So as 
the production decided by the OPEC’s members, supply and demand of the crude oil also 
decided and it hit the market and price of the crude oil. 
 In 1970s OPEC surged to international distinction throughout this decade; as its 
Member nation took direct control of their own nation domestic crude oil industries and took 
control a key declare in a pricing of petroleum on whole nation markets. On 2 occasions, oil 
prices surged sharply in a unstable market due to triggered through the Arab oil restriction in 
1973 and eruption of the Iranian Revolution in 1979. OPEC broaden its mandatory decision 
in the 1st Summit of Heads of State and Government in Algiers in 1975 and in this summit 
stated that the dilemma of the inferior nations and called to a novel era of collaboration in 
global relationships for the interests of global economic stability and development. This 
introduce to the organization of an OPEC Fund for International growth in 1976. Member 
Countries contribute on determined social and economic development schemes.

This written assignment will cover the topics demand and supply and the implication of elasticity. Question: In the 1970s, members of OPEC (Organization of the Petroleum Exporting Countries) decided...

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