Increases in the Wage Rates of Coal Miners and Decreases

question 57

Multiple Choice

Increases in the wage rates of coal miners and decreases in the price of natural gas would cause the price of coal to

• A)rise,fall,or remain unchanged depending on the magnitude of the changes,but the equilibrium quantity of coal would fall.
• B)rise,fall,or remain unchanged depending on the magnitude of the changes,but the equilibrium quantity of coal would increase.
• C)rise,but the equilibrium quantity of coal would rise or fall depending on the magnitude of the changes.
• D)rise,but the equilibrium quantity of coal would fall.
• E)fall,but the equilibrium quantity of coal would rise or fall depending on the magnitude of the changes.

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Definitions:

Inductive Reasoning

A method of reasoning in which general conclusions are drawn from specific observations or instances.

Economic Stability

A condition in which an economy experiences steady growth, low inflation, and low unemployment.

Unemployment

The situation where individuals who are capable of working and are actively seeking work remain jobless.

Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.