Question

What is the quickest way to resolve problems from a supply shock?

1. Lower prices
2. Decrease supply
3. Raise prices
4. Rationing

Answer 1

Raise Prices

Step-by-step explanation:

gradpoint (100%)

Answer 2

3. Raise prices.

Step-by-step explanation:

In the event of a supply shock, the quickest way to recover and adjust is by increasing prices.

If the supply reduces, then the suppliers shall demand more, this shall cause a burden to the seller.

The seller should increase the prices in order to cope up with the prices of the supplies.