In 2003, Saudi Arabia and Venezuela produced an average of 8 million and 3 million

barrels of oil a day, respectively. Production costs were about $10 a barrel and the price of oil

averaged $28 per barrel. Each country had the capacity to produce an additional 1 million

barrels per day. At that time, it was estimated that each country 1-million-barrel increase in

supply would depress the average price of oil by $3. Copy the following Table on your answer

sheet :

Venezuela 3 M barrels 4 M barrels 8 M barrels Saudi Arabia 9 M barrels