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OPEC and the supply and demand for oil
i. Consider the supply and demand for oil. Starting from a point where supply and demand are in equilibrium, explain with the use of a diagram how a global recession is likely to affect the equilibrium price and quantity of oil bought and sold. How do the slopes of the supply and demand curves affect your analysis?
ii. What objectives are pursued by members of the OPEC cartel? Discuss what actions they can take to achieve these objectives.
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