A sudden discovery of a new, massive source of uranium in New Mexico will likely cause the price of uranium to ________, which will ________ the quantity of uranium demanded by consumers.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

Question

Quizplus · Accepted Answer

A sudden discovery of a new, massive source of uranium would likely lead to an increase in supply, which typically causes prices to decrease. As prices decrease, the quantity of uranium demanded by consumers would increase, following the law of demand.

A Sudden Discovery of a New, Massive Source of Uranium