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Author Question: Gas and Coal Utility companies can use a mix of plants different energy sources to produce ... (Read 124 times)

rl

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on: Jul 1, 2018
Gas and Coal Utility companies can use a mix of plants different energy sources to produce electricity, mainly these are coal fired plants but increasingly they relying on gas turbines. Technological improvements in hydraulic fracturing, or fracking, have decreased the cost of extracting smaller pockets of natural gas. What affect does fracking have on supply and demand for coal?

Question 2

An oral auction
 a. is also called an English auction
 b. is where bidders submit increasing bids until all but one remains
  c. is where the sole remaining bidder wins and pays his winning bid
  d. all of the above


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amandalm

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Reply #1 on: Jul 1, 2018
Answer to Question 1

Fracking lowers the cost of natural gas. The supply of natural gas shifts out which lowers the price of natural gas. Since natural gas and coal are substitutes, this decreases the demand for coal.

Answer to Question 2

d


rl

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Reply #2 on: Jul 1, 2018
Thank you :)


amandalm

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Reply #3 on: Jul 1, 2018
Happy to help you


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