Suppose a new oxygen-enrichment process will cut in half the energy required to smelt copper. The firm selling licenses for this patented process will experience a greater demand for its product when
A) the price of copper falls and smelters become more desperate to economize.
B) energy prices are expected to fall.
C) energy prices are expected to rise.
D) the price of steel, a substitute for copper, declines.

Question

Quizplus · Accepted Answer

When energy prices are expected to rise, smelters will be more interested in adopting the new process to save on energy costs, increasing demand for the licenses.

Suppose a New Oxygen-Enrichment Process Will Cut in Half the Energy