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Test: AP Microeconomics
1. | Energy can be generated using either coal or natural gas as an input. If the supply of coal is interrupted, what are the most likely effects on the price and quantity of natural gas traded on the open market? Assume a perfectly competitive market with no government policy intervention. |
Price increases, Quantity increases
Price decreases, Quantity decreases
Price decreases, Quantity increases
Price increases, Quantity decreases
No change
Soren
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Certified Tutor
Georgetown University, Bachelor's (in progress), International Political Economy.
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