2006-08-29 19:29:44 · 5 answers · asked by Anonymous in Social Science ➔ Economics
The price would not change as all OPEC countries would increase production. Iran cannot afford to stop production in that, that is their major means of earning foreign currency. Their economy would collapse as other oil producing countries would see there could be a knock-on effect and take measures to remedy it.
2006-08-30 12:39:32 · answer #1 · answered by bob kerr 4 · 1⤊ 0⤋
Iran accounts for about 5.6% of world oil production. Assuming short-run elasticity of demand of -0.1 and long-run elasticity of demand of -0.3 (as estimated in John C.B. Cooper, "Price elasticity of demand for crude oil: estimates for 23 countries," OPEC Review, Volume 27 Issue 1 Page 1, March 2003), the unantisipated removal of Iranian supply from the market could lead to a 50% price increase, with eventual stabilization at 15% above the initial price level.
2006-08-30 12:02:04 · answer #2 · answered by NC 7 · 3⤊ 0⤋
Iran will not stop oil production. It may cut back its production and gets the best price for oil per barrel.
2006-08-30 02:36:11 · answer #3 · answered by AO 2 · 0⤊ 0⤋
About 5 cents or the worth of their leader.
2006-08-30 04:20:44 · answer #4 · answered by Colorado 5 · 1⤊ 0⤋
Who cares, we are going to develop anti-Iranian cars. Then Lilminibad won't be smiling, and the people will revolt against him.
2006-08-30 02:36:07 · answer #5 · answered by grey smily 3 · 0⤊ 0⤋