Among the Factors That Might Lead to a Divergence from the Path

question 3

Multiple Choice

Among the factors that might lead to a divergence from the path of prices for a depletable resource predicted by the economic models are: (i) unexpected discoveries of new reserves; (ii) new technologies which reduce extraction costs.

• A)i and ii 
• B)i but not ii 
• C)ii but not i 
• D)neither i nor ii

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Definitions:

Probability

The likelihood or chance of an event occurring.

Representativeness Heuristic

A cognitive shortcut that involves making judgments about the probability of an event under uncertainty, based on how much it resembles the typical case.

Prototype

A prototype is an original or first model of something from which other forms are copied or developed, often used in the context of designs, inventions, or the formation of categories in cognition.

Colour Perception

Colour perception is the process by which the human eye and brain translate light waves into colour, influenced by physical, psychological, and contextual factors.