Assume that coal is a normal good. If the price of coal increases and the quantity sold increases, which of the following is consistent with these observations?
What will be an ideal response?
The price of oil increased, oil and coal being substitutes.
You might also like to view...
Because banks are act as dealers in financial instruments such as bonds, foreign currency and derivatives, they are exposed to
A) credit risk. B) liquidity risk. C) trading risk. D) interest risk.
Some oil refineries were damaged by Hurricane Ike of 2008, leading to
A) a decrease in supply of gasoline. B) a decrease in quantity supplied of gasoline. C) a decrease in demand for gasoline. D) a decrease in quantity demanded for gasoline.
Which of the following is not a characteristic of a perfectly competitive market?
a. Sellers set the price of the product. b. There are many sellers. c. Buyers must accept the price the market determines. d. All of the above are characteristics of a perfectly competitive market.
Which of the following has the longest lag time for the Federal Reserve?
a. reducing production output b. increasing employment c. reducing government bonds d. increasing full price levels