We often witness prices of water, gasoline and construction ...

[xroflmao]

We often witness prices of water, gasoline and construction materials surge in a region just before a major storm hits. Some call this price gouging. In the economic way of thinking, however, those higher prices are caused by
 
  A) an increase in supply and an increase in demand.
  B) an increase in supply and a decrease in demand.
  C) a decrease in supply and an increase in demand.
  D) a decrease in supply and a decrease in demand.
  E) practices that are not connected to underlying supply and demand conditions.

Question 2

The price paid by a tenant to rent an apartment most closely reflects the cost to the
 
  A) landlord of constructing (or purchasing), maintaining, and operating the apartment.
  B) landlord of not renting to someone else.
  C) society of the opportunities thereby forgone.
  D) tenant of finding an alternative place to live.

[amcvicar]

Answer to Question 1

C

Answer to Question 2

B