Oil prices plunge 8% after OPEC+ fails to agree.
Questions
- What is OPEC+?
- What is the effect of the coronavirus outbreak on the market for oil?
- Everything else remaining the same, what is expected to happen in the oil market in April? Will this event change the supply of oil, the demand for oil, or both demand and supply?
- Given your answers to #2 and #3, do you expect the equilibrium quantity of oil to increase, decrease, or remain the same?
- Draw a diagram to illustrate your answers to #2, #3, and #4.