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What is a sudden shortage of a good called?

supply shock


rationing


spillover costs


black market

User Kybak
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1 Answer

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Option “A” Supply shock is the correct answer because supply shock refers to a sudden fall in the availability of quantity which is basically caused by changes in price. However, the supply shocks can be negative and positive. The negative supply shocks represent the shortages of the commodity. The sudden fall in production increases the price of commodity.

User Joe Kuemerle
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