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After a Hurricane Knocks Out Power to Thousands of Households

Question 154

Multiple Choice

After a hurricane knocks out power to thousands of households, the price of electric generators increases threefold. According to economists:


A) this is a vivid example of market and class exploitation by capitalists.
B) this discourages the use of electric generators in low-value uses, making them more readily available for high-value uses.
C) the rising price will give an incentive for firms to ship fewer electric generators to the disaster area.
D) the increase in demand for electric generators should technically cause the price to fall after a hurricane.

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