Suppose There Is a Tornado That Levels a City

question 128

Multiple Choice

Suppose there is a tornado that levels a city.As rebuilding begins,how might you analyze this effect in the market for lumber?

• A) The demand for lumber would increase, increasing both the equilibrium price and quantity.
• B) The supply of lumber would increase, decreasing the equilibrium price and increasing the equilibrium quantity.
• C) The demand for lumber would increase, decreasing the equilibrium price and increasing the equilibrium quantity.
• D) The supply of lumber would decrease, increasing the equilibrium price and decreasing the equilibrium quantity.

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Definitions:

Social Cognition

Social cognition is the process by which people process and interpret information about themselves and others in the social world.

Stereotype

A widely held but fixed and oversimplified image or idea of a particular type of person or thing.

Unifying Trait

A central personality characteristic that dominates and shapes an individual's behavior, actions, and thoughts across different situations.

Primacy Effect

The tendency to remember information at the beginning of a list better than information in the middle or end.