In 2017, heavy rainfall in Manitoba caused flood damage to many homes in the province. Shortly thereafter, the price of plywood rose significantly. What do these events suggest about the market for plywood?

a.An increase in the demand for plywood caused the price of plywood to rise.

b.A decrease in the demand for plywood caused the price of plywood to rise.

c.A decrease in the supply of plywood caused the price of plywood to rise.

d.An increase in the supply of plywood caused the price of plywood to rise.

There is an increase in demand for snowmobiles at the same time their input costs fall. What can we expect?

a.The quantity sold will decline, but the effect on price is uncertain.

b.Price will rise, but the effect on quantity sold is uncertain.

c.The quantity sold will increase, but the effect on price is uncertain.

d.Price will fall, but the effect on quantity sold is uncertain.

What is a hypothesis?

a.It is a normative economic statement

.b.It is a model with no connection to the real world.

c.It is a statement that cannot be evaluated using real-world data.

d.It is a testable proposition.