Coal Is an Input in the Production of Oil

question 40

Multiple Choice

Coal is an input in the production of oil. Suppose that over the last 3 months, the price of oil has increased and the quantity sold of oil has fallen. Other things remaining the same, which of the following is most likely to be true?

• A) There was a decrease in the demand for oil.
• B) Coal miners received large wage increases.
• C) Coal producers installed more efficient coal mining equipment.
• D) New mine operators entered the coal industry.
• E) New firms entered the market for oil.

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