Asked by Courtney Morris on Jul 05, 2024
Verified
During 2004 China increased its use of global oil by 40%. This followed a 100% increase during the previous 5 years. How do economists refer to this kind of economic event?
A) demand shock
B) equilibrium event
C) expanding commodity event
D) supply shock
Demand Shock
A sudden event that increases or decreases demand for goods or services, affecting the price and production levels.
Global Oil
Refers to the worldwide production, distribution, and consumption dynamics of crude oil and petroleum products.
Economic Event
An economic event is an occurrence that has a significant impact on the economic landscape, potentially altering market conditions, business environments, or financial positions.
- Comprehend the concept and impact of demand shocks in economics.
Verified Answer
ZK
Zybrea KnightJul 07, 2024
Final Answer :
A
Explanation :
Economists refer to this kind of economic event as a demand shock, which occurs when there is a sudden and significant increase in demand for a particular good or service. In this case, the increase in China's use of global oil by 40% in 2004 and a 100% increase during the previous 5 years is a clear example of a demand shock.
Learning Objectives
- Comprehend the concept and impact of demand shocks in economics.