1. OPEC currently produces about 40 per cent of the world output of oil. Assuming the short-term price elasticity of demand is 0.28, estimate the effect of the output hike on the current price, stating any assumptions in your calculations. 2. Describe the factors currently driving the world demand for oil; why has the price not fallen below the $ 110.25 USD level despite OPEC has increased its production? You may explain your answers according to the law of demand? 3. Explain the determinants/factors of the demand of world oil in general. You can refer to the list of factors affecting the demand. 4. Basically, what are the factors affecting the demand elasticity of world oil? You can refer to the list of factors affecting the demand elasticity. Explain.