Author Question: The prices of certain goods, such as ice and gasoline, often increase after a natural disaster such ... (Read 41 times)

hbsimmons88 · **on:** Jun 29, 2018

The prices of certain goods, such as ice and gasoline, often increase after a natural disaster such as a hurricane. The economic explanation for this observation is that

A) people panic in disaster situations.
B) disasters bring out the worst in people.
C) the disaster temporarily reduces the supply of the goods and increases the demand for the goods.
D) the disaster temporarily reduces the supply of the goods and reduces the demand for the goods.

Question 2

When the price of tablets goes up and fewer tablets are purchased, this is representative of the

A) law of demand.
B) law of supply.
C) law of market operations.
D) law of increasing costs.