Explain what the Saudi oil minister meant when he warned OPEC of using its market power too much by saying "Remember, the Stone Age did not end because we ran out of stones."
What will be an ideal response?
The oil minister warned that if OPEC uses its market power to raise oil prices too much, there is a stronger incentive for entrepreneurs to come up with alternatives to oil -- and once a cost-effective alternative is developed, that competition may reduce or eliminate the monopoly power of OPEC.
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Improvements in technology provide benefits to:
A) consumers, through lower prices. B) workers, although some jobs may be eliminated. C) firms, through lower production costs. D) all of the above.
When demand decreases, and price is the only reason for the decrease, what type of movement will the demand curve show?
A. a shift to the left B. a shift to the right C. along the curve to a higher quantity demanded D. along the curve to a higher price