Question

Frank's Heating and Air Conditioning Company specializes in electric heat pumps. Frank keeps track of the price of natural gas, knowing that Group of answer choices natural gas creates more environmental greenhouse effects than coal. an increase in the price of natural gas will increase demand for his electrical heating systems. gas heating systems and electrical heating systems are complementary goods. when the price of natural gas goes up, the quantity demanded also rises. the demand for natural gas is price elastic.

Answer 1

Answer:

an increase in the price of natural gas will increase demand for his electrical heating systems

Explanation:

In this question, electrical heat pumps and natural gas are substitutes

Substitute goods are goods that can be used in place of another good.

if the price of a good increases, the demand for the substitute increases and if the price of the good reduces, the demand for the substitute increases.

If the price of natural gas increases, the quantity demanded of natural gas would reduce in line with the law of demand. According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded

As a result of the increase in price of natural gas, consumers would increase their demand for electric heat pump and there would be an increase in demand for the good