The Prices of Certain Goods, Such as Ice and Gasoline

question 64

Multiple Choice

The prices of certain goods, such as ice and gasoline, often increase after a natural disaster such as a hurricane. The economic explanation for this observation is that

• A) people panic in disaster situations.
• B) disasters bring out the worst in people.
• C) the disaster temporarily reduces the supply of the goods and increases the demand for the goods.
• D) the disaster temporarily reduces the supply of the goods and reduces the demand for the goods.

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Definitions:

Acquisition

The act of gaining possession or knowledge of something.

Unobservable Mental States

Internal psychological conditions, such as thoughts, beliefs, and desires, that cannot be directly observed by others.

Consciousness

The state of being aware of one's own existence, sensations, thoughts, surroundings, and the external world.