You can also learn more about OPEC in online encyclopedias. Students then share their answers. After reading and discussing the article, make sure students understand what OPEC is, what reparations are, what compensation accounts are, and what sanctions are. Once students are comfortable with these concepts, separate them into groups of 3-4 students. Ask each group to try and figure out how a group like OPEC can cause prices to be lower or higher than the price that would naturally come about in a free market.
Students can explain in words, or use the graph to show the changes.
Ask students to share their answers with the class. Explain and illustrate the way an oligopoly can affect the supply and demand curve. They should discover what countries are members, how much crude oil each country exports yearly, and which countries are most prone to breaking agreements and producing more than their quotas. Students will be evaluated based on written journal entries, participation in class and small group discussions, and successful completion of homework assignments. Explore how OPEC operates.