The Shortage Occurs Because

question 39

Multiple Choice

The shortage occurs because:

• A) the quantity supplied is more than the quantity demanded at this price.
• B) of the black market.
• C) the quantity supplied is less than the quantity demanded at this price.
• D) the price floor was set by the government.

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Definitions:

Illusory Correlations

The perception of a relationship between two variables when none actually exists.

Memory Biases

The tendency for memory to be distorted by previous experiences, desires, or the current emotional state.

Representativeness Heuristic

A belief that outcomes will always reflect characteristics of the process that generated them (e.g., an expectation that the outcome of a series of coin flips will always look random).

Coin Flips

A random process used to generate two equally likely outcomes, typically representing "heads" or "tails."