Oil prices rise ahead of OPEC meeting The Organization of the Petroleum Exporting Countries (OPEC) produces about 40 percent of the world's output of crude oil. With the global demand for oil falling, OPEC has cut production in an attempt to stop the price sliding further from its high of $147 a barrel. OPEC knows that to raise the world price of oil it has to cut the total production of its member countries. Source: AFP, May 2, 2009 OPEC also knows that the demand for crude oil is inelastic. Is it possible to conclude from these facts that OPEC's total revenue would increase if it were to cut its production? Question content area bottom Part 1 A. No because when the price of oil rises, the demand for oil decreases. B. Yes because OPEC would never decrease production unless it would be able to increase total revenue. C. No because non-OPEC oil producers can increase production, which lowers the price. D. No because when demand is inelastic a decrease in production raises price and decreases total revenue. E. Yes because when demand is inelastic a decrease in production raises price and increases total revenue