A change in equilibrium in one market that affects other markets is called:
A)a multiplier effect.
B)an external effect.
C)a spillover effect.
D)a lagged exchange effect.

Question

Quizplus · Accepted Answer

A spillover effect occurs when a change in equilibrium in one market affects other markets. This can happen when there are interconnected markets or when goods and services produced in one market are used as inputs in another market. The term "spillover" suggests that the effects spill over from one market to another, which can have both positive and negative consequences.

A Change in Equilibrium in One Market That Affects Other