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During the 1970s the Price of Oil Rose Dramatically, Which

Question 26

Multiple Choice

During the 1970s the price of oil rose dramatically, which in turn caused the price of coal to increase.This can best be explained by saying that oil and coal are:


A) complementary goods and the higher price for oil increased the demand for coal.
B) substitute goods and the higher price for oil increased the demand for coal.
C) complementary goods and the higher price for oil decreased the supply of coal.
D) substitute goods and the higher price for oil decreased the supply of coal.

Correct Answer:

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