Higher Oil Prices Represent Higher Energy Costs in General Across

question 183

Multiple Choice

Higher oil prices represent higher energy costs in general across the economy leading to increased use of bicycles and public transportation. Which answer BEST describes the idea that changes in one market can produce effects in previously unseen markets?

• A) The rise in the demand for bicycles causes a rise in the price of bicycles.
• B) Increased bicycle demand increases the demand for rubber to make bicycle tires. Farmers in Southeast Asia switch from rice to rubber production and the price of rice increases.
• C) The greater demand for public transportation offsets the demand for heating oil.
• D) The rise in the demand for oil causes a rise in the demand for bicycles.

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Definitions:

Antitrust

Legislation enacted to increase competition in the marketplace by preventing monopolies, anti-competitive practices, and other unfair business tactics.

Bankruptcy

The legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.

Writ of Certiorari

A court order that directs a lower court to deliver its record in a case so that the higher court may review it.

En Banc Appeal

A type of appeal in which the case is heard before all judges of an appellate court rather than by a panel of judges selected from them, typically reserved for cases of exceptional importance.