(a)[3]
Define what a cartel is and explain why one may be formed.
(b)[4]
What evidence is there in the information that suggests OPEC is a cartel?
(c)[5]
Using the information above, Analyse with the help of an appropriate diagram whether the overall price change shown in Fig. 2 is consistent with what would be expected in the oil market.
(d)[8]
Is there any evidence in the information that could lead to the conclusion that the US economy is a winner in the short run but might become a loser in the long run?