You learnt thatthe Organisation of Petroleum Exporting Countries (OPEC) decided to reduce the supply of oil by 9.7 million barrels per day from May 2020. In this context, answer the following questions.

Question 1A:Name and describe the phenomenon which involves such joint decision-making. What are its advantages and disadvantages?

Question 1B:What made OPEC decide to cut the supply of oil? What was the desired outcome of the decision? What wasthe change in the supply and demand curvesof oil and the subsequentmarket equilibria? Analyse the changesboth before and after the decision to reduce supply.

Question 1C:What market structure does the OPEC operate in? What are the key features of such a market structure?