Economics 0455 · IGCSE · Price changes

Price changes — practice question

During one year, the world output of coal stood at 3.94 billion metric tonnes with an average yearly price of $252\text{ per metric tonne}$. A few years afterwards, world output had fallen to 3.66 billion metric tonnes while the average yearly price dropped to $120\text{ per metric tonne}$. What could account for this decrease in the price of coal?

  • Aalmost half the world’s coal reserves were in just two countries
  • Bthe exhaustion of coal seams throughout the world
  • Cthe switch to renewable sources of energy
  • Dthe use of coal as a raw material as well as a fuel

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