1.Natural Gas: Fracking technology is improved allowing easier access to natural
ID: 1147233 • Letter: 1
Question
1.Natural Gas: Fracking technology is improved allowing easier access to natural gas reserves.
A. "Change D, Increase P, Increase Q"
B. "Change D, Decrease P, Decrease Q"
C. "Change Quantity Demanded, Increase P, Decrease Q"
D. "Change Quantity Demanded, Decrease P, Increase Q"
2.Rice: Reports surface about traces of arsenic (a poison) in rice.
A."Change D, Increase P, Increase Q"
"Change D, Decrease P, Decrease Q"
"Change Quantity Demanded, Increase P, Decrease Q"
"Change Quantity Demanded, Decrease P, Increase Q"
A. "Change D, Increase P, Increase Q"
B. "Change D, Decrease P, Decrease Q"
C. "Change Quantity Demanded, Increase P, Decrease Q"
D. "Change Quantity Demanded, Decrease P, Increase Q"
Explanation / Answer
1. Option A: Since the natural gas being inelastic good, with the improvement in technology the supply would increase, so in order to meet the availability people would start to buy more at increased prices which would shift the demand curve to right
2. Option B: Because of presence of poisonous substance in rice, people reduce consuming rice which would reduce the demand by shifting to left which reduces price and quantity.
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