Since Improved Technology Continually Lowers the Cost of Discovering and Producing

question 186

Multiple Choice

Since improved technology continually lowers the cost of discovering and producing oil, how can rising oil prices in recent years be explained?

• A) This is evidence against the supply and demand model.
• B) Demand has increased by more than supply increased, raising prices.
• C) Prices always rise when supply shifts down and to the right.
• D) Oil is one of the few commodities that do not follow the supply and demand model.

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Definitions:

Gestalt Law

Psychological principles that describe how humans tend to organize visual elements into groups or unified wholes.

Figure-Ground

A perceptual principle signifying the organization of visual elements into objects (the figure) that stand out from their surroundings (the ground).

Composite of Taste

A complex experience derived from the combination of multiple flavor factors and sensory inputs.

Structuralists

Early psychologists who aimed to analyze the structure of the mind by breaking down mental processes into their most basic components.