A temporary decrease in the price of oil would be considered a:
A. short-run supply shock.
B. long-run supply shock.
C. demand shock.
D. The changing price of oil would not affect any of these.
A. short-run supply shock.
You might also like to view...
When the price of almonds falls
A) the quantity of almonds demanded increases, ceteris paribus. B) the demand for almonds decreases, ceteris paribus. C) the demand for almonds increases, ceteris paribus. D) the quantity of almonds demanded decreases, ceteris paribus.
A monopolist faces the (inverse) demand for its product: p = a - bQ. The monopolist has a marginal cost given by c and a fixed cost given by F
a. Assume that F is sufficiently small such that the monopolist produces a strictly positive level of output. What is the profit-maximizing price and quantity? b. Compute the maximum profit for the monopolist. c. For what values of F will the monopolist earn negative profit?
What is the difference between short-run equilibrium and long-run equilibrium in the goods and services market?
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B