In the market for personal computers and in the stock market:
A) supply and demand shifts change prices and quantities.
B) persistent shortages and surpluses rarely exist.
C) in response to shifts in demand and supply, equilibrium is restored quickly.
D) all of the above are true.

Question

Quizplus · Accepted Answer

All of the statements are true for both the market for personal computers and the stock market. Shifts in supply and demand can cause changes in prices and quantities, but persistent shortages and surpluses are rare. In response to shifts in demand and supply, the market reaches a new equilibrium quickly.

In the Market for Personal Computers and in the Stock