If the price of oil, a close substitute for coal, increases then the
A. supply curve for coal will shift to the right.
B. demand curve for coal will shift to the right.
C. equilibrium price and quantity of coal will not change.
D. demand curve for coal will shift to the left.
E. supply curve of coal will shift to the left.
Answer: B
You might also like to view...
The public policies designed to mitigate the effects of monopolies are:
A. highly debated issues. B. well-defined and accepted. C. highly effective. D. proven to increase benefits more than increase costs.
When the Fed buys a Treasury bill from the public, how does it usually pay for the T-bill?
a. by writing a check on a commercial bank account b. by printing new Federal Reserve notes c. by creating new reserves in bank accounts d. by prepaying taxes into the Treasury's account
If you are using a credit card prudently, you should
A) pay only the interest on any outstanding balance. B) make only the minimum payment each month. C) gradually expand the amount borrowed to the card's credit limit. D) pay the balance in full each month.
If the interest rate rises and government spending falls, what will happen to output, ceteris paribus?
a. It will rise. b. It will stay the same. c. It will fall. d. It is uncertain what will happen.