If Coal and Oil Are Substitute Inputs in the Production

question 88

Multiple Choice

If coal and oil are substitute inputs in the production of electricity, an increase in the price of oil

• A) will increase the demand for coal.
• B) will reduce the demand for coal.
• C) will increase the supply of coal.
• D) will reduce the supply of coal.
• E) will not affect the demand for coal.

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Definitions:

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Fundamental abilities in critical thinking, such as analysis, evaluation, inference, explanation, and self-regulation.

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A technique for extracting natural gas or oil from deep underground formations by injecting fluid at high pressure.