Which of the Following Is an Example of a Supply

question 28

Multiple Choice

Which of the following is an example of a supply shock?

• A)A surge in consumer optimism prompts increased buying of goods and services.
• B)A surprise tax rebate from the government gives people more money to spend.
• C)A dramatic increase in energy prices increases production costs for firms in the economy.
• D)Government increases spending on education.

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Definitions:

Tying Strategies

Business practices where the sale of one product is linked to the purchase of another, often used to increase market share.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm or industry's output expands, typically due to inefficiencies that arise with increased size.

Meter Consumption

The amount of a utility or resource (such as water, electricity, gas) used as recorded by a meter.

Peak Period

The time period during which the demand for a service or product is at its highest, often leading to congestion or increased prices.