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1. What are the factors that determine the price in the oil market?
2. Describe what has happened to the price of oil since 1980s.
3. Use demand and supply diagrams to illustrate your answers.
4. What is meant by price elasticity of demand? How can price elasticity of demand for oil explain the price ?uctuations.
5. How will price changes affect the total revenue or total income of oil exporting countries?
6. How does a change in the price of oil affect (i) oil importing countries and (ii) oil exporting countries?
7. Research and find examples of 2 countries that import oil and two countries who export oil and how these countries have been affected by oil price changes.
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