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 is any sudden event that can impact either the supply or demand curves, such as a natural disaster, change in technology, change in consumer preferences, or change in government policies. The shift can occur in either the demand curve, the supply curve or both, depending on which factor is impacted by the shock. Therefore, the best answer is C, as the shift can occur in either curve or both of them.

A "Shock" Is Something That Creates a Shift In