A "shock" is something that creates a shift in:
A) the demand curve only.
B) the supply curve only.
C) either the demand curve or the supply curve.
D) both the demand curve and the supply curve at the same time.

Question

Quizplus · Accepted Answer

A shock can affect either the demand or supply curve in an economy. For example, an increase in consumer income can shift the demand curve to the right, while a natural disaster that destroys production facilities can shift the supply curve to the left. Therefore, both the demand and supply curves can be affected by a shock, hence, option C is the correct answer.

A "Shock" Is Something That Creates a Shift In