Suppose That Many Coal Mines Are Shut for Environmental Reasons

question 137

Multiple Choice

Suppose that many coal mines are shut for environmental reasons.This will cause

• A)an increase in the supply of coal (a rightward shift of the supply curve).
• B)a decrease in the supply of coal (a leftward shift of the supply curve).
• C)a movement up the supply curve.
• D)a movement down the supply curve.
• E)no change in the supply curve,only a change in price.

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Definitions:

Market Demand

The aggregate amount of a product or service that every customer in a market is prepared and able to buy at different price levels.

AU Optronics

A Taiwan-based company specializing in the manufacturing of TFT LCD panels used in various electronic devices.

Price Fixing

An agreement among competitors to set the price of a product or service, rather than allowing it to be determined through free market competition.

Reaction Function

Describes how one player's strategic decision in a game or market scenario is influenced by the decisions of other players, effectively mapping out a player's optimal responses.