Questions
Single choice
Jamestown heating and air-conditioning company specializes in electric heat pumps. The business should keep track of the price of natural gas, knowing that
Options
A.gas heating systems and electrical heating systems are complementary goods.
B.when the price of natural gas goes up, the quantity demanded also rises.
C.an increase in the price of natural gas will increase demand for electrical heating systems.
D.the demand for natural gas is price elastic.
E.natural gas creates more environmental greenhouse effects than coal.
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Step-by-Step Analysis
The question asks about how a rise in natural gas prices affects the market for electric heating systems.
Option 1: gas heating systems and electrical heating systems are complementary goods. This is incorrect because gas and electric heating are generally substitutes, not complements. If natural gas becomes more expensive, consumers are more likely to ......Login to view full explanationLog in for full answers
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