ECO401 GDB No. 2

Total Marks 3

Starting Date : Tuesday, June 07, 2011
Closing Date : Thursday, June 09, 2011

Status Open Question/Description
The major oil producing countries had made a cartel named “OPEC” (oil producing and exporting countries) in 1960. OPEC exports oil to rest of the world; there are significant problems for entrance in the market for oil. In which market structure this case falls and why the demand curve of oil is relatively inelastic?

NOTE:your answer must not exceed from 50 words.