Suppose It Becomes a Common Belief Among Consumers That the Current

question 99

Multiple Choice

Suppose it becomes a common belief among consumers that the current cotton crop falls because of a drought, the price of cotton clothing will rise greatly next year. Then in the current market for cotton clothing, the

• A)equilibrium price will fall and the equilibrium quantity will rise.
• B)equilibrium price and equilibrium quantity will increase as demand increases.
• C)equilibrium price and equilibrium quantity will decrease as demand increases.
• D)demand for cotton clothing will decrease as consumers search for alternatives.
• E)equilibrium price will rise and the equilibrium quantity will fall.

---

Definitions:

Opponent-Process Theory

A psychological and neurological model that explains complex behaviors and perceptions (including color vision and emotions) as the result of opposing pairs of stimuli.

Young-Helmholtz Theory

A theory suggesting that the human eye perceives color through the response levels of three kinds of cones, each sensitive to one of three colors: red, green, or blue.

Complementary Color Pairs

Colors that are opposite each other on the color wheel and when combined, cancel each other out to produce a grayscale color like white or black.

Chromatic Color

Colors that have hue, as opposed to achromatic colors (black, white, and grays), often perceived with a distinct colorfulness or saturation.