Final answer:
An event of consequence in business can lead to significant changes in economic conditions and is often referred to as an externality. These externalities result from environmental disturbances or human activities and affect demand and supply, leading to shifts in market equilibrium.
Step-by-step explanation:
A happening of consequence in the context of business and economics refers to an event or occurrence that has the potential to cause changes in assets, liabilities, and equity. These events might be sparked by environmental disturbances such as natural disasters or by human activities, and often include economic risks. They may be categorized as externalities, which can yield unintended positive or negative consequences. An example of an externality could be the building of a dam which, while intended for power generation or flood control, might create significant environmental disruptions.
Understanding these events and their impact on economic equilibrium involves looking at demand and supply shifts. A change in an economic event can lead to different impacts depending on whether it shifts the demand or supply curve to the right or left, and these shifts are often quantified using the concepts of primary cause and supply and demand analysis. Economic actors must consider how factors such as changes in interest rates or income can move these curves and affect overall market conditions.