Economics class: Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day
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Specification:
Demand, supply, cartels
Click to read the article below and then answer the questions:
Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day
What is OPEC+?
How many barrels of oil will Saudi Arabia produce per day after the implementation of the cut in output?
What is Saudi Arabia’s maximum potential output per day?
Why is a minimum price of $80 a barrel so crucial for Saudi Arabia?
Define i) demand; and ii) supply
Using a demand and supply diagram, analyse the effects of Saudi Arabia’s decision to cut oil production by 1mn barrels a day
Gavin Clarke, Emmanuel College
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