Mansour: We should both plan to change some of our investments from coal companies to less polluting energy companies. And here's why. Consumers are increasingly demanding nonpolluting energy, and energy companies are increasingly supplying it.
Therese: I'm not sure we should do what you suggest. As demand for nonpolluting energy increases relative to supply, its price will increase, and then the more polluting energy will cost relatively less. Demand for the cheaper, dirtier energy forms will then increase, as will the stock values of the companies that produce them.
Therese responds to Mansour's proposal by doing which of the following?
A. Advocating that consumers use less expensive forms of energy
B. Implying that not all uses of coal for energy are necessarily polluting
C. Disagreeing with Mansour's claim that consumers are increasingly demanding nonpolluting energy
D. Suggesting that leaving their existing energy investments unchanged could be the better course
E. Providing a reason to doubt Mansour's assumption that supply of nonpolluting energy will increase in line with demand
OA D
Source: Official Guide
Therese: I'm not sure we should do what you suggest. As demand for nonpolluting energy increases relative to supply, its price will increase, and then the more polluting energy will cost relatively less. Demand for the cheaper, dirtier energy forms will then increase, as will the stock values of the companies that produce them.
Therese responds to Mansour's proposal by doing which of the following?
A. Advocating that consumers use less expensive forms of energy
B. Implying that not all uses of coal for energy are necessarily polluting
C. Disagreeing with Mansour's claim that consumers are increasingly demanding nonpolluting energy
D. Suggesting that leaving their existing energy investments unchanged could be the better course
E. Providing a reason to doubt Mansour's assumption that supply of nonpolluting energy will increase in line with demand
OA D
Source: Official Guide
