Horizontal axis shows the years, ranging from 1970 to 2020 in increment of 5. The vertical axis shows the price of oil in U.S. dollars per barrel according to the 2015 value of dollar. The graph shows two lines. A smooth curve labeled as “Hotelling price path” moves on a small upward slope, starting at y=5 in 1970 and ending at y=40 in 2020.

A second line labeled “actual price” is displayed above this curve. The actual price line depicts several rises and falls in oil price across the years. It shows a steep rise from 1970 to 1975 to reach a point at 42 dollars. The upward ascent is labeled as “OPEC cartel raises prices”. The line shows a small fall before rising again steeply between 1978 and 1980, culminating at 85 dollars. It declines between ...

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