Suppose that many coal mines are shut for environmental reasons. This will cause
A) no change in the supply curve, only a change in price.
B) a movement up the supply curve.
C) a decrease in the supply of coal (a leftward shift of the supply curve).
D) an increase in the supply of coal (a rightward shift of the supply curve).
E) a movement down the supply curve.
Answer: C) a decrease in the supply of coal (a leftward shift of the supply curve).
Economics
You might also like to view...
At the most profitable level of production, a firm's marginal cost will be _____ the market price.
(A) Set by (B) Less than (C) Equal to (D) Greater than
Economics
Speculators in derivatives markets
A) reduce the efficiency of these markets. B) are acting contrary to U.S. securities laws. C) accept risk transferred to them by hedgers. D) reduce the liquidity of these markets.
Economics