Describe, using Fig. 1.1, how oil production in Nigeria changed between 2015 and 2016.
Compare, using supply and demand diagrams, how OPEC’s decisions changed the world price of oil in 2014 and in 2016.
‘The demand for OPEC’s oil is price inelastic.' What evidence is there in the information to support this claim?
Fig. 1.2 shows that output in Nigeria’s oil sector fell sharply from Q1 of 2016. During this time, total national output for Nigeria decreased by an annual rate of only around 2%. What can be inferred from this about the relative importance of the non-oil sectors in Nigeria?
Analyse, using aggregate demand and aggregate supply, two likely effects of OPEC’s policies on the economy of Nigeria.
Discuss, with the help of the information, the extent to which OPEC will be able to control the world price of oil.