Author Question: If one really believes that price spikes known as price gouging are due to a surge in greed among ... (Read 67 times)

urbanoutfitters · **on:** Jun 29, 2018

If one really believes that price spikes known as price gouging are due to a surge in greed among suppliers, then

A) they haven't quite mastered the economic way of thinking.
B) their comfort in knowing that thousands if not millions of others agree with them is not sufficient economic evidence to conclude that their claim is correct.
C) their claim implies that significant price decreases are due to a sudden reduction in greed among suppliers.
D) all of the above are true.

Question 2

An increase in the price of oil ________ aggregate supply, shifting the aggregate supply curve ________ and potentially bringing the ________ phase of the business cycle.

A) decreases; rightward; expansion
B) increases; rightward; recession
C) increases; rightward; expansion
D) decreases; leftward; recession
E) decreases; rightward; recession