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Many Public Utilities Burn Oil to Generate Electricity

Question 151

Essay

Many public utilities burn oil to generate electricity.If the price of oil increases, we would expect there to be:
A.a shift to the right in the supply curve of electricity and a lower price for electricity.
B.a shift to the left in the supply curve of electricity and a higher price for electricity.
C.a shift to the right in the demand curve for oil and a higher price for electricity.
D.a shift to the left in the demand curve for oil and a lower price for electricity.

Correct Answer:

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a shift to the left ...

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