In 2007 the price of oil increased, which in turn caused the price of natural gas to rise. This can best be explained by saying that oil and natural gas are:
A. substitute goods and the higher price for oil increased the demand for natural gas.
B. complementary goods and the higher price for oil decreased the supply of natural gas.
C. substitute goods and the higher price for oil decreased the supply of natural gas.
D. complementary goods and the higher price for oil increased the demand for natural gas.
Answer: A
You might also like to view...
If we import more than we export from the rest of the world we
A) must borrow an equal amount from the rest of the world. B) can lend an equal amount to the rest of the world. C) are running a trade surplus. D) are helping to finance investment in the rest of the world.
John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000. If the state lottery offers a 1 in 10,000 chance of winning $10,000, John will
A) pay whatever price it takes to play. B) pay $1 to play this game. C) pay less than $1 to play this game. D) not be willing to play this game at any price.
The Malthusian theory of population has its greatest applicability today in the ____ nations.
Fill in the blank(s) with the appropriate word(s).
In which of the following situations would the Coase theorem more likely to be applied?
A) Two neighbors: a farmer and a beekeeper. B) Highway drivers and the dwellers of neighborhoods crossed by the highway. C) A railroad and its adjacent land owners. D) None of the above.