Using the Supply and Demand Model, What Is the Best

question 115

Multiple Choice

Using the supply and demand model, what is the best way to show the effects on the plywood market of households preparing for a hurricane? (Note: people use plywood to board up their homes to protect them from damage from a hurricane.)

• A) Supply curve shifted to the right, demand curve did not shift.
• B) Demand curve shifted to the right, supply curve did not shift.
• C) Both supply and demand curves shifted to the right.
• D) Supply curve moved right and demand curve shifted to the left.

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Definitions:

Broker Commission

A fee paid to a broker for executing a transaction. It is typically calculated as a percentage of the transaction value.

Differential Income

The increase or decrease in income resulting from a change in business decisions or operations.

Variable Manufacturing Costs

Expenses that change in proportion to the production volume, such as raw materials and direct labor costs.

Differential Effect

The impact of a business decision on the revenue or cost, highlighting the difference between two alternatives.