In the Diagrams Below, the Subscript "1" Refers to the Initial

question 12

Multiple Choice

In the diagrams below, the subscript "1" refers to the initial position of the curve, while the subscript "2" refers to the final position after the curve shifts. Which diagram illustrates the effect on the natural-gas market of the widespread use of "fracking," or hydraulic fracturing, by gas-drilling companies?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Payday Lending

A type of short-term borrowing where lenders offer high-interest loans based on the borrower's income and credit profile.

Interest Rates

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, or the rate at which interest is paid by bond issuers on the bond’s face value.

Military Bases

Facilities established by the military for housing troops, storing equipment, and training personnel, often strategically located.

Java Jacket

A protective sleeve designed to insulate a person's hand from hot beverages in disposable coffee cups.