If OPEC increases its price of oil and demand for oil decreases by a very small amount, the demand of oil is ?

One Response to “If OPEC increases its price of oil and demand for oil decreases by a very small amount, the demand of oil is ?”

  1. Zarathustra....alas Says:

    If you are talking about profits, they will most likely equal out in your example depending on the price increase and demand decrease.
    I am not really sure of your question, sorry. However, a decrease in the demand for a commodity will usually LESSEN the price, not increase it. Supply and demand- A huge supply and a small demand= small prices. Big demand= bigger prices. Since in this case there is a large controlled supply, these prices (and the supply) are commonly manipulated according to demand and to a lesser extent what the market can reasonably bear.
    Ie- As we start switching to more and more alternative fuels and ppl depend on oil less, the price of oil will almost w/o question drop to try to sell more oil to make more profits.