Economics class: Opec+ sticks with oil supply increase after US overture to Saudi Arabia

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Specification:

•  Demand, supply, consumer surplus, producer surplus

Click to read the article below and then answer the questions:

Opec+ sticks with oil supply increase after US overture to Saudi Arabia

• Define the terms:

  i) Demand

  ii) Supply

• Using a diagram, distinguish between producer and consumer surplus

• Using a demand and supply diagram, analyse the effects of Saudi Arabia’s agreement to continue increasing its monthly oil production

• Using a demand and supply diagram, analyse the effects of an increase in the supply of oil on consumer surplus and producer surplus

Gavin Clarke, Emmanuel College