OPEC deadlocked on oil production hike 

Oil prices exceeded the $100-a-barrel Wednesday after OPEC said it could not reach an agreement about increasing crude oil production. 

Consider the market for oil. Draw a demand curve and a supply curve consistent with the information that the price exceeded $100 a barrel. Label both curve.

Draw a point at the equilibrium price and equilibrium quantity. Label it 1 

Now suppose that OPEC members agree to increase productio

Draw a curve to show the effect of this agreement in the market for oil. Label it.

Draw a point at the new equilibrium price and new equilibrium quantity Label it 2 

Price (dollars per barrel) 120 115 110- 105- 100- 95 90 85 80 100 110 120 130 140 150 160 170 Quantity (millions of barrels per day) (100,120)