A Fall in Import Prices or an Increase in Productivity

question 55

Multiple Choice

A fall in import prices or an increase in productivity ________.

• A)constitute a positive supply shock
• B)typically leads to a rise in commodity prices
• C)typically comes with a reduction in output
• D)all of the above
• E)none of the above

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Definitions:

Demand Inelasticity

A situation where the demand for a product does not change significantly with a change in its price.

Wendy's Hamburgers

A popular fast-food chain known for its burgers, recognized for its square hamburger patties.

Fast Food

A type of mass-produced food designed for commercial resale and with a strong priority placed on "speed of service" versus other relevant factors involved in culinary science.

Price Floor

A government or group-imposed price control or limit on how low a price can be charged for a product.