When Hurricane Andrew Passed Through Louisiana in the Summer of 1992

question 129

Multiple Choice

When Hurricane Andrew passed through Louisiana in the summer of 1992, approximately a quarter of the sugar cane crop was destroyed. Ceteris paribus,

• A) the supply of sugar decreased, and the price of sugar increased.
• B) the supply of sugar decreased, and the price of sugar decreased.
• C) the demand for sugar increased, and the price of sugar increased.
• D) the demand for sugar decreased, and the price of sugar decreased.

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Definitions:

Federal Gasoline Tax

A tax imposed by the federal government on the sale of gasoline, primarily used to fund transportation projects.

Taxation Principle

Guidelines and theories in economics that outline how to structure taxes to achieve certain economic objectives, such as fairness, efficiency, and simplicity.

Highway Maintenance

The process of keeping roads in safe, usable condition, including repairs, cleaning, and updating road signs and markings.

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Financial activities and policies at a local or municipal level, including budgeting, taxation, and public spending to manage community resources.