Question 44
OPEC and Other International Organisationsthe major strategy used by OPEC to influence oil price is by
- A.allocating production quotas to members
- B.influencing buyers at the international market to buy at high prices
- C.allowing member countries to produce at their discretion
- D.increasing the supply of the commodity
Show the answer and explanation
Answer: A (allocating production quotas to members)
Explanation
OPEC fixes how much each member may produce. Limiting supply keeps prices up.