If We Plot the Quantity of Aluminum Ore Mined Per

question 85

Multiple Choice

If we plot the quantity of aluminum ore mined per year on the horizontal axis and the real annual price of aluminum ore on the vertical axis, we find that the path of price-quantity combinations generally indicates lower real prices and higher quantities over time. Which of the following statements is a plausible explanation for this observed outcome?

• A) Aluminum supply shifted leftward faster than the aluminum demand curve shifted rightward.
• B) Aluminum supply shifted rightward faster than the aluminum demand curve shifted rightward.
• C) Aluminum supply shifted rightward and aluminum demand remained constant.
• D) both A and B above
• E) both B and C above

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