n 2016, the Department of Energy (DOE) projected that the price of electricity,
ID: 2440157 • Letter: N
Question
n 2016, the Department of Energy (DOE) projected that the price of electricity, adjusted for inflation, would remain roughly flat for the next 25 years. Meanwhile, the price of gasoline, adjusted for inflation, was expected to rise by about 50 percent.
1.) If the DOE is right, the demand for electric cars is likely to
A.increase.
B. decrease.
C. not change.
2.) The DOE projected that the amount of energy generated from renewable resources such as solar power would rise almost 90 percent over the next 25 years, in part because fossil fuels such as oil and natural gas are expected to get more expensive. Suppose, instead, that new drilling techniques mean the price fossil fuel unexpectedly falls over the next 25 years.
A.That would likely not change the the future use of renewable resources.
B.decrease the use of renewable resources.
C.increase the use of renewable resources.
Explanation / Answer
1.Electricity and natural gas are substitutes.If the price of natural gas is expected to rise and the price of electricity is expected to remain stable,then the demand for electric cars would rise because electricity is required for electric cars.
Answer-A
2.When energy generated from natural resources is expected to rise on the assumption that price of fossil fuels will rise in the future.If price of fossil fuels on the other hand falls,then the energy generated from renewable resources must also fall.
Answer-B
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.