Which of the Following Was a Beneficial Supply Shock in the United

question 165

Multiple Choice

Which of the following was a beneficial supply shock in the United States in the late 1990s?

• A)higher energy prices
• B)lower import prices
• C)stable real prices of computers
• D)None of the above.Supply shocks in the late 1990s were detrimental to the economy.

Interpret how changes in market conditions (demand or supply) affect prices and quantities in both short-run and long-run scenarios.

Understand the roles of firm entry and exit in determining market equilibrium in the long run.

Analyze the impact of external market forces on equilibrium points and firm behavior.

Understand the difference between diminishing marginal productivity and its effect on total product versus total cost.