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A Question on an Economics Exam Asks, "What Happens in the Market

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Essay

A question on an economics exam asks, "What happens in the market for jelly when the price of peanut butter increases?" Allison, an excellent student, shows the demand for jelly increasing. Is she necessarily wrong? Why or why not?


Definitions:

Synesthesia

A phenomenon where a single sense is experienced as though it were being perceived by multiple senses, for example, visualizing sounds.

Clairvoyance

The supposed ability to gain information about an object, person, location, or physical event through extrasensory perception, beyond the known human senses.

Precognition

The knowledge of an event before it happens, often considered as a type of extrasensory perception.

Telepathy

The alleged exchange of information between individuals without utilizing any established human senses or physical interaction.

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