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 supply and demand, equilibrium is restored quickly.
D)all of the above are true.

Question

Quizplus · Accepted Answer

All of the above statements are true. In the market for personal computers and in the stock market, shifts in supply and demand can cause changes in prices and quantities. However, persistent shortages and surpluses are unlikely to exist for an extended period of time due to market forces that work to restore equilibrium. When there is a shift in supply and demand, the price and quantity will adjust to a new equilibrium point.

In the Market for Personal Computers and in the Stock