All Else Being Equal, a Negative Supply Shock

question 25

Multiple Choice

All else being equal, a negative supply shock:

• A) causes consumer surplus to increase and producer surplus to decrease.
• B) causes consumer surplus to decrease and producer surplus to increase.
• C) causes both consumer and producer surplus to increase.
• D) causes both consumer and producer surplus to decrease.

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Definitions:

Dixiecrats

Lower South delegates who walked out of the 1948 Democratic national convention in protest of the party’s support for civil rights legislation and later formed the States’ Rights Democratic (Dixiecrat) Party, which nominated Strom Thurmond of South Carolina for president.

1948 Convention

Likely refers to the Universal Declaration of Human Rights adopted by the United Nations in 1948.

Civil Rights Plan

Strategies and policies designed to eliminate discrimination and ensure equal rights for all citizens, particularly in contexts of racial and social injustice.

Federal Civil Rights Commission

An independent, bipartisan agency established by the U.S. government responsible for investigating, reporting on, and making recommendations concerning civil rights issues in the United States.