There Is an Increase in Incomes Due to a Tech

question 6

Multiple Choice

There is an increase in incomes due to a tech boom.Which of the following correctly captures the effect of this change on the market for gasoline?

• A)Both equilibrium quantity and price will increase.
• B)Both equilibrium quantity and price will decrease.
• C)Equilibrium quantity will increase,but equilibrium price will decrease.
• D)Equilibrium quantity will decrease,but equilibrium price will increase.

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Definitions:

Assuming Differences

The act of presuming that there are inherent distinctions between individuals or groups without evidence, often leading to stereotypes and misunderstandings.

Primacy Effect

Tendency to attend to the first pieces of information observed about another person in order to form an impression.

Halo Effect

Attributing a variety of positive qualities to those you like.

Horn Effect

Attributing a variety of negative qualities to those you dislike.