The Drought of 2011 Devastated Hay Crops in the Plains

question 3

Multiple Choice

The drought of 2011 devastated hay crops in the plains states and horse owners ranged far and wide to purchase hay for their horses when winter arrived. Hay can be purchased "up north" for $4 a bale and a few entrepreneurs with large trailers were more than willing to pick up a few hundred bales and haul them south where demand was high. The transportation cost was $6 per bale and a packing and loading cost of $1 was typical. The landed cost of a bale of hay this winter was:

• A)$4.
• B)$6.
• C)$10.
• D)$11.

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Definitions:

Availability Heuristic

A cognitive shortcut based on the first examples that surface in one's thoughts while assessing a particular subject, idea, strategy, or choice.

Statistical Chart

A visual representation of data designed to help interpret large amounts of information through diagrams such as bar graphs, pie charts, or histograms.

World Hunger

The chronic condition of being undernourished and unable to consume enough food for a healthy life, affecting millions worldwide.

Availability Heuristic

A cognitive shortcut where individuals estimate the likelihood of an event based on how easily examples come to mind, which can lead to biases.