What Will an Adverse Supply Shock Cause Output and Prices

question 6

Multiple Choice

What will an adverse supply shock cause output and prices to do?

• A) It will cause output and prices to rise.
• B) It will cause output and prices to fall.
• C) It will cause output to rise and prices to fall.
• D) It will cause output to fall and prices to rise.

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Definitions:

Cones

Photoreceptor cells in the retina of the eye that function best in relatively bright light and enable the perception of colors.

Fovea

The central part of the retina where visual acuity is highest and detailed vision is best due to a high concentration of cones.

Cones

Cones are photoreceptor cells in the retina of the eye responsible for color vision and operate best under bright light conditions, differing from rods, which are more sensitive to dim light.

Rods

Photoreceptor cells in the retina of the eye that are highly sensitive to light, making them responsible for vision at low light levels.