Natural Gas Is Used as a Source of Energy in Many

question 236

Multiple Choice

Natural gas is used as a source of energy in many manufacturing processes. Assume large new deposits of natural gas are discovered in Nebraska, which increase the supply of natural gas and decreased the price of natural gas. This would cause

• A) the short-run aggregate supply curve to shift to the right.
• B) the short-run aggregate supply curve to become flatter.
• C) the short-run aggregate supply curve to shift to the left.
• D) the short-run aggregate supply curve to become nearly vertical at all levels of output.

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Definitions:

Consequential

Relating to consequences or effects, particularly in the context of damages in contracts, where it refers to losses arising as a result of a breach.

Punitive

Intended as punishment, often referring to damages awarded in a lawsuit intended to reform or deter the defendant and similar parties from engaging in conduct similar to that which formed the basis of the lawsuit.

Breach of Contract

The failure to fulfill one's obligations as agreed upon in a contract, allowing for legal action by the aggrieved party.

Primary Benefit Test

A legal doctrine used to determine who is the primary beneficiary of a service or transaction, often influencing the decision on liability or responsibility under the law.