Stricter environmental regulations and increased demand for energy have caused an increase in the demand for relatively clean natural gas. In the last several years, improved extraction technologies and new discoveries have increased the availability of natural gas. What has been the net effect on price and quantity for natural gas?
A. Quantity sold rose while the effect on price is ambiguous.
B. Quantity sold fell and the effect on price is ambiguous.
C. Quantity sold and price both rose with certainty.
D. Quantity sold and price both fell with certainty.
Answer: A
You might also like to view...
Suppose that in 2011, 3 million plasma TVs were purchased at $950 each, while in 2012, 4 million plasma TVs were purchased at $800 each. What might have caused this change?
A) There were fewer workers in plasma TV manufacturing. B) The price of LCD TVs (a substitute for plasma TVs) rose. C) The price of LCD TVs (a substitute for plasma TVs) fell. D) There was an advance in plasma TV manufacturing technology.
If the supply of loanable funds shifts left, then
a. the real interest rate and the equilibrium quantity of loanable funds both fall. b. the real interest rate falls and the equilibrium quantity of loanable funds rises. c. the real interest rate and the equilibrium quantity of loanable funds both rise. d. the real interest rate rises and the equilibrium quantity of loanable funds falls.
The main problem with price subsidies is that they:
A. lead to a decrease in demand. B. lower total economic surplus. C. do not help the poor afford essential goods and services. D. are not effective at lowering prices.
Among the most important demand side factors explaining homes prices would be the
A. growing shortage of real estate agents. B. adoption of CAFTA. C. relative price of hybrid vehicles. D. level of mortgage interest rates.