We often witness prices of water, gasoline and construction materials surge in a region just before a major storm hits. Some call this "price gouging." In the economic way of thinking, however, those higher prices are caused by
A) an increase in supply and an increase in demand.
B) an increase in supply and a decrease in demand.
C) a decrease in supply and an increase in demand.
D) a decrease in supply and a decrease in demand.
E) practices that are not connected to underlying supply and demand conditions.
C
Economics
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Can activities like driving faster than the speed limit or driving without wearing a seat belt be considered rational behavior? Why or why not?
Economics
Figure 11-2
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In Figure 11-2, which of the points are efficient allocations of resources?
A. A, B, and C B. B and C only C. C and B and D D. B only
Economics